19 October 2010
If company has found out that there was some mistake in closing stock of the last year and actually it is not physically in existence say 114 million stock. Then what will be the treatment of this item in profit and loss account?what will be the principle behind it?
19 October 2010
Book the shortage as expenditure in profit & loss account. This is a normal practice. every year there will be some excess and shortage after physical verification.
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