Auditguru Auditguru Frequently Asked Questions(FAQ) Auditguru Auditguru
 Meet Us Here
Nikhil asked 4 weeks ago
  1. ensure that the qty of goods in hand with consignee have been valued at cost plus non recurring expenses unless the value is lower ..In case NRV is lower the inventory should be valued at NRV and also see that allowance has been made for damaged and obsolete goods in making the valuation 
  2. Reconcile the figure of the goods on hand as given in the last account sales with the performa invoice and account sales received during the year ..if any consignment inventory was in hand of consignee at beginning of the year the same should be taken into account in the reconciliation ……COULD U PLZ EXPLAIN tHESE 2 points with regard to audit of goods sent on consignment
2 Answers
RaviRavi Staff answered 4 weeks ago

Goods with consignee are owned by consignor and its his inventory and it will be shown in his balance sheet at cost or nrv whichever is lower.
Cost of goods = Regular Cost + Non Recurring Expenses (Such as transportations, loading unloading, insurance required to deliver goods to consignee) 

If NRV is lower it will be valued at it.

RaviRavi Staff answered 4 weeks ago

Reconciliation of Goods at Consignee
Op + Good Sent on Consignment – Sales = Closing Stock
To make above reconciliations
we will get opening from last year closing
data for goods sent on consignment can be received from proforma invoices during the year
sales figures can be obtained from accounts sale during the year
closing stock obtained should match with last account sales received from consignee  

Call Back Request