(1)Losses due to depreciation should be analysed and recorded under following heads, according as they are due to-(i)normal fluctuation of market prices;(ii)fair wear and tear;(iii)lack of foresight in regulatinig purchases;(iv)neglect after purchase.(2)Losses not due to depreciation should be grouped under the following heads:-(i)losses due to theft or fraud;(ii)losses due to neglect;(iii)losses due to an act of God and other calamities such as fire, enemy action, etc.;(iv)anticipated losses on account of surplusage of obsolete stores or of purchases in excess requirements;(v)other losses due to damage, etc.Sale and Disposal of Stores and Writes Off of Stores
