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Inventory report negative balance

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Querist : Anonymous

Querist : Anonymous (Querist)

28 April 2018 Hi all

I am managing the accounts of a petrol dealer, we have petrol bunks and depot also. we sell petrol and diesel in wholesale and retail. sometimes, when we face shortage of stock, we borrow it from other dealers and return it to them when our stock comes (like barter system) and also some times we take petrol from them and in return we gave them diesel and vise versa.
now at the end of the financial year, we found that the stock (qty) is showing a negative balance (means we have to return the stock to another dealer)
since we have not paid / received any amount for these stock transfers we are not showing sales / purchase for these transactions, Only physical stock register is maintaining for these kind of transactions.

Is there any way to show negative value of stock in the balance sheet?

please help me

Thanks
Rens Sebastin Lukose

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

29 April 2018 Negative value of stock can't be shown in Balance sheet. Debit stock and credit stock borrowing returnable. By this entry positive stock can be shown in BS.

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