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.
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.
agree with 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.
| 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. |
 |
Hi,
Can anybody explain me above "GRN Accounting or Import Accounting".
Karia Overseas
Ahmedabad
CA
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