when the whole stock is not sold out,,and there was marked down on that stock,
can the whole marked down is credited to (memo,dept.stock a/c)
give suggestions,
thankyou
for example cost of a product is 100.
mark up is 50% on cost, so ptofit on that is 50/-
Memorandum stock a/c debited with 150
memorandum marup a/c credited with 50
that means expexted sales from that unit is 150/- whaere as expected profit is 50.
when marked down the profit by 30/- (defective some extent).
i.e. when profit sacrificed means revenue will decline to the extent of ptofit (marked down).
so 30 should reflect under credit side of memorandum stock a/c and debit side of memorandum markup a/c.
CAclubindia
