When we change the valuation of inventory , how will we adjust the difference in our accounts ?
When we change the valuation of inventory , how will we adjust the difference in our accounts ?
Do inventory is entered in books.
As per my opinion only sales and purchases are routed through books.
Value of inventory is entered as closing stock in Trading and P&L (cr item) and also in BS (dr item) nullifying the impact on TB/PL/BS.
If you change the method of valuation the impact is reported in notes to account per requirement of AS, and impact is not routed through P&L. Impact is automatically affect the PL and BS through "entered as closing stock in Trading and P&L (cr item) and also in BS (dr item)"
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