12 August 2012
Negative number means increase in inventory during the period. It means that that prodcued more during the peirod whihc could not be sold.
The inventiry balance is mmore than the balance carried forward last year.
13 August 2012
It is because the cost of purhcase / production is debited as expenditure.
It is either presented on credit side or negative in debit side.
However, revised schedule VI also now prescribes the debit side treatmet.
The principle is Matching cost against revenue. If teh goods are not sold in the period, the cost of suhc also should be excluded. SInce the purhcase is shown as gross in the expense side, the cost of inventory part of that line item is valued sepeartely at cost and reduced from curent period's P&L.
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