Treatment of Abnormal Inventory

Accountancy

In the two sums attached below from ICAI material they have used 2 different ways to adjust abnormal inventories..Is there any logic behind the difference or do both of these can be applied and give out the same closing inventory value? Thank you!

Screenshot_2022-01-30-10-56-41-74_e2d5b3f32b79de1d45acd1fad96fbb0f.jpg

Screenshot_2022-01-30-10-55-30-51_e2d5b3f32b79de1d45acd1fad96fbb0f.jpg

Screenshot_2022-01-30-10-56-24-20_e2d5b3f32b79de1d45acd1fad96fbb0f.jpg

Abishek M

CA Final

★ 11K+

30-Jan-22 11:01

640

Answers (1)

Best Answer

Both can give same closing inventory value, can apply either of it. Gross Profit figures will be however different.

Sahibdeep Singh

CA Inter

★ 14K+

31-Jan-22 09:52