As 2 or Ind as 2

Can anyone please tell me why we pass this entry

Loss on write down of inventory
To Inventory acc

According to me, the value is already adjusted by closing stock. Also, we do not prepare inventory accounts under periodic system.
Replies (2)
Quick Summary
This discussion clarifies the accounting entry for inventory write-downs, specifically addressing why an 'entry loss' is passed to the Inventory account. Participants explain that this loss is ultimately recognised in the cost of sales account. This adjustment ensures that both the inventory's value on the balance sheet and the cost of goods sold accurately reflect the reduced value.

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The loss goes to cost of sales a/c 

The inventory is reduced both the ways, in cost of sales inventory in assets. 

 

 

 

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