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.
CAclubindia
