Acc consignment chapter

Thread Starter

Sir so I can go INSURANCE Company admitted in consignee it os possible

CA Suraj Lakhotia Admin

There are different ways to treat loss. We have covered the logic in class. One option is to credit consignment account with the total abnormal loss portion and create a separate abnormal loss account. The second approach is to credit consignment account with insurance claim portion and net abnormal portion

Thread Starter

In exam point of view in consignments q came means .... Let say. Goods lost in transit in consignment for that insurance company said to consignor we will give the money later on like that ..... For that the consignor will do the entry in abnormal loss acc....consignor will credit it, by Insurance company admitted..... This entry is crt or not this is my query can you tell me sir One more question but in above question y they are made a entry by insurance company 35000 in consignment acc .... in cr side how that part can you explain me pls pls sir I did not understand that part pls explaiin sir

Thread Starter

Sir pls clarify me

CA Suraj Lakhotia Admin

Total abnormal loss is credited to Consignment account and debited to abnormal loss account. Amount admitted by insurance company - Dr. Insurance company and credit abnormal loss account Balancec transferred to profit and loss account. This has been explained in classes Also in the videos shared above.