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• # 103264
• Wed 10 Dec 2014 05:40 PM

Hi,

I have a client who runs a football tea bar - occassionally matches are called off at the last minute due to weather but my client has already purchased the fresh perishable food (milk, bread etc.) which then has to be thrown away so she has the cost but can't generate any income.

I'm sure there is a way to record food wastage but for the life of me, I can't think how - can anyone advise?  

Thanks in advance,

Jo

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• # 103268
• Wed 10 Dec 2014 06:17 PM

Jo

The cost of the food would be a business expense in the first place.

It is unfortunately unlucky that the potential income source has dried up.

The fact that the food is perishable and cannot be sold on a future date is different from say other goods that have been bought in for resale and can be held to be sold later.

It is just a trading loss 

• Sian Arnold

  Insight Bookkeeping & Accounting Services Limited

  sian@insight.biz

  www.insight.biz

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• # 103273
• Wed 10 Dec 2014 10:49 PM

Hi Jo,

I would process the stock purchase as normal to the relevant nom code.

Ask client to keep a wastage book, preferably a duplicate book and record every item wasted along with the cost.

At the end of each month the client should give you the orginal top copy and then you can record a monthly journal from stock purchase code to wastage/write-off nom code.

It makes it easier and client can see the amount of wastage per month/year.

Marilyn

• A clever person solves a problem.

  A wise person avoids it.

  Albert Enstein

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