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Inventory valuation

Accountancy

in adjustment (i) why aren't we deducting cost of electric fittings from closing inventory? in adjustment (ii) it says there has been no entry in the books for goods taken as free samples. then why are we not deducting goods taken as free samples from inventory? Isn't the entry Advertisement debit to purchases a/c?

Asmita Kar

CA Foundation

★ 7K+

20-Apr-25 20:13

Answers (2)

Closing INventory is generally valued with physical counting or using inventory store report. . So since the items would not be in inventory, the closing inventory value would be correct. Same applies for second adjustment.

CA Suraj Lakhotia

Admin

21-Apr-25 10:25

CA Suraj Lakhotia Admin

okay, thank you

Thread Starter

Asmita Kar

CA Foundation

★ 7K+

21-Apr-25 16:12

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