Sir if goods are sent on consignement and there is a normal loss and abnormal loss means we have to calculate the abnormal loss nd closing inventories with the rate of normal loss we have calculated am I right sir?
Yes. Find out the rate per unit in case of normal loss
Cost per unit= (Total cost+Expenses incurred) /(Total quantityâ??Normal loss)
â??Calculate abnormal loss at that rate and credit it to consignment account and transfer to P&L account