Easy Office
LCI Learning

Over Valuation of Stock

This query is : Resolved 

28 May 2011 ABC Enterprises valued an inventory costing Rs 20000 twice in closing stock.
Before finalising the account , it came to know this error.
What accounting entry will it pass to rectify the error?
and where those entries reflect as far as presentation of Financial Statement is concerned.
i.e in trading A/c , P/L A/C and Balance Sheet.

05 June 2011 Two options available

1-Just down the valuation, generally closing stock not routed through JV.

2-If routed then pass the following entry
Trading A/c Dr
To Closing Stock ( Current Asset Group )



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries