Reconciliation - physical stock & book value

This query is : Open

SAM KOSHY (Querist)
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26 October 2010 Dear sir,

The closing stock value (Inventories) in balance sheet as at 30-09-2010 is US$ 70,0000.

But the actual stock value after the physical stock check is found to be US$ 60,0000.

How to write off the difference US$10,000 from the balance sheet as at 31-10-2010.
US$10,000 worth items are actually not in the stock.

which entry to be passed to write off US$10,000.

Closing stock a/c( Balance sheet)- Dr.
Inventory expense a/c ( P&L) - Cr.

Is the above journal entry correct.

I am different ERP software and can not journalise the closing stock and a P& L expense item. What to do?

I can journalise the closing stock and purchase account.

Please reply

Sam