Dear Friends,
We taken Physical stock verification and found about 3 Lakhs stock in Lower side comparing with book stock. In this case, how do we account the same?..
Stock Dr
To Stores A/c
or
PHYSICAL stock Discrepancy Dr
To P & L A/c
If it is recorded properly in the inventory books, then reconcile it. Stock to stores is a good journal entry in branch accounting when goods are transferred from h.o to stores. If this is not a branch, no need to do any5ing because your book balance is correct and your ending valuation calculation is wrong. Update it accordingly because ppl use different heads to account.
CMNITY HIRE
New Delhi
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