suppose an inventory is under valued by20000 in financial year, what entry would i pass in next financial year to rectify the same.Kindly help me with the accounting entry.
abhijeet ravi (none) (24 Points)
04 July 2011suppose an inventory is under valued by20000 in financial year, what entry would i pass in next financial year to rectify the same.Kindly help me with the accounting entry.
Deepesh Khatri
(CA)
(167 Points)
Replied 04 July 2011
In the case, closing stock is undervalued and profit is booked short of actual.
So, on the first day of the next FY, pass the following entry;
Inventory A/c Dr
To P & L A/c
This increases both profit and stock value.
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 04 July 2011
| Originally posted by : Deepesh | ||
 |
In the case, closing stock is undervalued and profit is booked short of actual. So, on the first day of the next FY, pass the following entry; Inventory A/c Dr To P & L A/c This increases both profit and stock value. |
 |
Pramod
(CA)
(25 Points)
Replied 06 July 2011
Hi,
Can anybody explain me above "GRN Accounting or Import Accounting".
CAclubindia
