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Consignement

Accountancy

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?

S.P. RAYAN

CA Inter

★ 3K+

13-May-20 12:14

363

Answers (1)

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