 # Unit-11 Consignment Accounts-II

In this unit you will learn how the value of unsold goods is worked out and recorded in books of account.

# What procedure is followed for valuation of closing stock when the abnormal and normal losses occur simultaneously? ## Learning Pundits Content TeamWritten on Apr 24, 2019 12:36:56 PM

The procedure followed for the valuation of closing stock when the abnormal and normal losses occur simultaneously is given below:

i.Take the total cost of goods consigned and add all the non-recurring expenses incurred by the consignor as well as the consignee.

ii.Deduct the quantity and cost of abnormal loss from the total number of goods consigned and the cost as obtained in (i) above respectively.

iii.Deduct the quantity of normal loss from the quantity worked out in (ii) above without making any adjustment in cost.

iv.Now you will be left with the cost of goods of the good units with the consignee. Calculate cost per unit of these-units by dividing the cost (remaining after deducting the cost of abnormal loss) by the number of good units.

v.Multiply the number of unsold units with the cost per unit obtained in (iv) above to arrive at the value of unsold stock.