why the loss by fire taking in to the credit side of the
trading a/c.instead of this is company's loss?
Answers were Sorted based on User's Feedback
Answer / shruti agarwal
Loss by fire is shown in the credit side of the trading
account to reduce the balance of goods purchased by the
cost price. Since it is a loss to the company the loss
figure is also debited to the profit and loss account. The
purpose of crediting it in the trading account is to reduce
the purchases, because such goods are neither sold nor they
are in the stock.
Is This Answer Correct ? | 16 Yes | 3 No |
Answer / shrey
The Trading A/c is prepared to show the profit/loss from
trading activities. Goods lost by fire haven't been sold and
aren't in the closing stock either (obviously), but the
corresponding purchase amount has been debited. Therefore,
the cost of goods lost by fire is credited to show the
correct/accurate result from trading activities.
Is This Answer Correct ? | 13 Yes | 1 No |
Answer / rupesh
Goods lost by fire is credit side because the reduce purchase of goods cost prise
Goods lost by fire havent been sold and not included in closing stock
The purchase cost is debited
Is This Answer Correct ? | 0 Yes | 1 No |
Give Example for Intangible assets that is depreciable?
what is the mean of trail blance sheet
What is MIS Report? How do you make MIS Report?
EXPAND______________PTI
what is the difference between valuation class and valuation area in sap FICO
GAP Stand for
11 Answers Genpact, Infosys, Northern Trust,
Define the PROFIT.
Wat is the diff.between revenue and capital expenditure? Wat is meant by deffered revenue expenditure?
14 Answers TCI, TCS,
Transfer nett profit of Rs 325000/- to Reserves and Surplus
I need the diffnation of Gross profit and Net Profit, kindly brief. Thanking U.
3. In reviewing Corporate equity on a balance sheet, what effect be included in the description “Total Capital Stock” a) Par value of preferred b) Par value of common c) Paid in Capital excess of par value d) Both (a) and (b)
The Closing stock balance on the cr side of Tarding Proft and Loss A/c due to this our revenue so when we isued the material or used in production then whats happen with closing stock(I think Closing Stock will dr after Isuabce/use materil in Production)if its correct tell me