In inventory (chpter 4 of accounts), we deduct the abnormal sales from normal sales but in practical qsn no. 4 , the abnormal sales is deducted from normal sales only to calculate gp and then added it

Aditi · 16 Jul 2024

Okkk thnku

Prathna · 16 Jul 2024

There are two ways to treat abnormal goods, one is deduct it from opening inventory and sales both to get normal inventory and normal sales. In this case, the gross profit will only be calculated on normal sales, profit from abnormal sales will not be considered. The second way is don't deduct it from total of opening inventory and total of sales, instead, in working notes separate normal sales and abnormal ones, calculate gross profit on normal sales, adjust profit or loss on abnormal sales with gross profit and deduct total gross profit from total sales.