Inventory adjustment

c.s.karthik (articles) (53 Points)

24 March 2014  

Hello All,

A basic doubt has arisen to me. When we purchase and sale goods then the Dr is Purchases A/c and Cr is Sales A/c respectively. and in both the cases inventory has been received and dispatched respectively.. So in this process how does inventory is being hit ! i mean where is the entry being passed to hit the inventory A/c ? How is the inventory account being reflected in both cases !! Please clarify !...