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.
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Inventory entry
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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 | ||
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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. |
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Hi,
Can anybody explain me above "GRN Accounting or Import Accounting".
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