Consignment stock valuation

Accountancy

Can anyone tell why normal loss value is not deducted from the stock only quantity is. This is from April mtp

Sai Prasanth

CA Foundation

★ 14K+

04-Jun-23 17:52

627

Answers (3)

We deduct the normal loss only from the quantity and not from the value of stock, because the normal loss gets absorbed by the good units. But, for abnormal loss, we have to deduct it from both quantity as well as stock. This is the general concept followed.

Varshaa M

CA Final

★ 35K+

04-Jun-23 18:01

Cost of normal cost will be included in total cost as it is normal unavoidable cost

R Yashwanth Kumar

CA Final

★ 87K+

05-Jun-23 01:05

Go through this video.

CA Suraj Lakhotia

Admin

05-Jun-23 08:27