How do you account for loss of stock in transit in purchase vouchers?
Example: ABC Company purchased 100 units of Goods. Out of which 10 are lost during transit.
In case of wastage during transportation, the payment may have been made for 100 units; the unexpected loss during transportation is 10. So, in this case - quantity will be reduced by 10 however retaining the cost order to value that the purchase of 90 units has cost him equal to 100 units. This will help in proper valuation of closing stock and cost of goods sold.