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Consignment
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Should we take the reduction in market price for the cost which we have bought or invoice price as we value inventory on invoice price and transfer diffrence on inventory reserve but here for reduction they have taken at cost i.e.,20 per metre and but in the question it's not mentioned right is it to be on cost or invoice price? i.e., reduction by 10%
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Thread Starter
Sugam SMSo always when they say reduction in market price by 10% we should reduce from cost itself. Sir these are quite tricky please upload full set soln videos
Yes. When you do on own you retain longer. When faculty solves it seems easy. We will make a note of it and add
Thread Starter
Sugam SMIf I prepare ledger on goods sent on consignment So there is additional 50000 loading which is to be debited in order to balance right? So can we show like loading as extra? In pencil the ledger is noted as just of understanding.
Dr. Goods sent on Consignment - 150000 Cr Goods Sent ono Consignment - 50000 Net trf to Trading = 100000
Thread Starter
Sugam SMSir what you have deducted isn't it inventory reserve?
Yes. That is to show you the net impact
Thread Starter
Sugam SMIs shop-spoil of an article is normal loss or abnormal loss. Consignment practical ques2. That is depreciation of cycle
When unit is not fully available it is a loss. Here it is a valuation reduction.
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