Stock waste
George
Registered Posts: 43 Regular contributor ⭐
How do you account for wastage of perishable food items, (fruit and veg)unsold at the day's end? I am aware of the principles of stock valuation, but wonder how they apply here, and what relief the trader can claim. Thanks in advance for any help.
George
George
0
Comments
-
I would always advise the trader to keep a list of stock scrapped/binned with a note of values as part of their records. It will help if you ever have an enquiry and if you are looking for variances in margins etc.
In terms of making a claim the "cost" of the stock losses are in purchases and not in closing stock or sales hence the trader gets 100% relief
Hope that helps
Paul0 -
In my former life I owned a food outlet. The cost of the waste was included in purchases. However, I did keep a record of waste mainly for purposes of trying to improve the amount, but also in case of any investigation or enquiries into the business.0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 325 NEW! Qualifications 2022
- 160 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 95 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 273 VAT
- 92 Software
- 274 Tax
- 138 Bookkeeping
- 7.2K General accounting discussion
- 202 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership