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Saturday 19 March 2011

ABNORMAL LOSS OF STOCK BY ACCIDENT

Abnormal Loss of Stock by Accident, e.g. by Fire:

If a portion of the stock is lost the value of such loss is first to be ascertained. Thereafter, Abnormal Loss Account is to be debited and Treading Account is to be credited. Abnormal Loss Account is closed by transferring to the Profit and Loss Account.

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