How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4944
Type Your Tax Question Here...
bigduckontax is online now

Can you tell me how to write off employee theft in food retail/manufacture

This answer was rated:

Can you tell me how to write off employee theft in food retail/manufacture accounts and what would be the double entry requirements please?

Hello, I'm Keith and happy to help you with your question.

The solution to your problem might be described as being as long as the proverbial piece of string as there are many book keeping scenarios.

However, suggested book keeping transaction would be Debit [a new account, say Theft Losses], Credit Stocks. The new account would be written off against the profit an Loss account at the year end. Alternatively, ihe loss could be written off against the P & L account immediately. Any insurance claim or other compensation received would reverse, in part or in full, such journal entries, but may, of course, not cover all losses. Compensation ordered by a Court would not be liable to taxation and would have to be annotated to ensure that the tax computation is correctly calculated.

I do hope I have been able to resolve your conundrum.

bigduckontax and other Tax Specialists are ready to help you
Thank you for your support.