Inventory of finished goods

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Rahul Jain (Querist)
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24 November 2024 WHICH ACCOUNTS ARE CREDITED WHILE DEBITING INVENTORY(finished goods and work in progress)ACCOUNTS.

Furthermore in the credited accounts the expenses towards inventory will get reduced the why is the need to show change in inventory of finished goods and work in progress in P&L

Dhirajlal Rambhia online

Dhirajlal Rambhia online

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24 November 2024 Finished Goods Account is typically credited when goods are sold, written off, or moved to a lower-value account.
Work in Progress Account is credited when the goods are transferred to Finished Goods or when costs are settled (materials, labor, overhead).