Accounting entries for inventory losses of current assets
1. In case of cash inventory loss:
Debit: property loss and surplus to be disposed
Credit: cash on hand
After approval according to management authority:
Debit: other receivables (amount to be compensated by the responsible person or the insurance company)
Administrative expenses (shortage amount caused by failure to find out the cause)
Credit: property loss and surplus to be disposed
2. Inventory loss:
Debit: property loss and surplus to be disposed
Credit: Raw materials (or inventory items)
After approval according to management authority:
Debit: raw materials (including the value of stock in scrap materials)
Other receivables (amount to be compensated by the responsible person or the insurance company)
Administrative expenses (belonging to general operating loss)
Non operating expenses - extraordinary losses (extraordinary losses such as accidental disasters)
Credit: property loss and surplus to be disposed
Among them, if the loss is caused by theft, loss, mildew and deterioration due to poor management, the input tax of inventory loss inventory needs to be transferred out.
The inventory loss of current assets of an enterprise includes cash inventory loss and inventory inventory loss. When an inventory loss occurs, it should be accounted through the "Pending Property Loss and Overflow" account, and included in the corresponding account according to the reason for the inventory loss.