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Sale or return basis
Accountancy
How that second entry will come. Only when sales is reversed that entry will come. But that remaining 80 goods is shown under inventory acc then why that second entry. Please anyone explain
Answers (2)
If u check both the entries there is a mis match in amount which is nothing but profit margin.so at the end of the year end ,we still don't know whether the customer will accept or not since time limit for expiry still available.since we don't know whether he will accept or not ,so by applying prudence concept we reverse the sales entry.thats why second entry came.then we pass last entry at cost price because we still apply prudence concept
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