I have a huge doubt on the opening and closing stock reserve calculation ,please can anyone help me get it solved in simple words?
1 Replies
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 28 March 2021
Stock reserve is the reserve where unrealised profit is included in stock means Loading concept where certain percentage of profit is included in stock. That profit should be eliminated by passing alternative journal entry.
Means in opening stock which is debit balance then reserve should be eliminated in credit side and vice versa for closing stock.
Means in opening stock which is debit balance then reserve should be eliminated in credit side and vice versa for closing stock.
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