How to make entries for unreasonable losses

Answer 1

1. Make an accounting entry when the reason for unreasonable loss during transportation is to be investigated:
Borrowing: profit and loss of assets to be disposed-profit and loss of current assets to be disposed
Credits: raw materials
2. When he found out the reason:
If it is a normal loss, it will be included in the administrative expenses/non-operating expenses; if it is an accident that is the responsibility of the insurance company or the transportation unit, it will be included in the other accounts. The entry is:
Borrowing: management fees/non-operating expenses;
Borrowing: Other Receivable: ** Unit;
Credits: Loss on equity of properties to be disposed of-Loss on current assets to be disposed of
3. If there is an unreasonable loss in the purchase of materials (such as the purchase of oil), when purchasing oil:
Borrowing: Material Purchasing
Taxes Payable--Value Added Taxes Payable (input tax)
Credits: accounts payables
When an unreasonable loss was discovered, it was assumed that the cause was unknown:
Borrowing: Loss or overflow of property to be disposed of
Credits: Material purchases
Taxes payable-vat payable-vat payable-input tax transferred out)

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