Sometimes, part of goods being consigned may be lost/destroyed or damaged either in transit or in the consignee’s warehouse. Such loss can be either normal loss or abnormal loss.
This article discuss what are these losses and their respective accounting treatment in consignment accounting.

Normal Loss In Consignment

unavoidable, inherent and to natural causes like evaporation, leakage, drying, […]

This article looks at the type of additional commission given by consignor to consignee and the purpose(s) of giving such incentives/commissions.

Overriding Commission

Commission given to the consignee in addition to the normal commission

Purpose of such incentive is to motivate the consignee to create market for new products.

Sometimes, this additional commission is allowed to consignee where certain […]

Part 1: How Goodwill arises and the definition of Goodwill
 
Part 2: Factors affecting Goodwill & Various Method of Goodwill Valuation
 
Part 3: Valuation of Goodwill On Entry Of New Partner or Retirement of Old Partner
 
Part 4: Valuation of Goodwill by the Arbitrary Assessment Method
 
Part 5: Valuation Of Goodwill by the Capitalization of Expected Future Net profits

Content Page:
Reasons For Capital Reduction And Its Accounting Treatment
 
A basic understanding of Capital Reconstruction/Reorganization
 
Part1: What is Company Reconstruction
 
Part 2:Internal Company Reconstruction –Capital Reduction By The Return of Surplus Capital to the shareholders
 
Part 3:Internal Company Reconstruction-Capital Reduction Where Capital Is Not Represented By Available Assets
 
Part 4:Accounting entries used in capital reduction where capital is not represented […]

In earlier articles, we learned about cash conversion cycle and other working capital management techniques.
Below is a simple illustration on how to compute the working capital requirement and a few suggestion to improve the computed amount:-
Let’s have say Division A in Company ABC Ltd plans to launch a new product. The plan […]