Miteshmitesh asked 1 year ago

” scrutinise consignment account and ensure loading is reversed and year end adjustment of stock reserve ” not understood

3 Answers
RaviRavi Staff answered 1 year ago

When you send goods to consignee at invoice price say cost +10%
Consignment A/c Dr 110 (100+10) 
To Goods Sent to Consignment 110
Say 60% goods sold
Consignee A/c Dr 66
To Consignment A/c 66
Closing Stock 40%
Cl Stock Dr 44
To Consignment A/c 44
NOw Closing Stock is Valued more than cost so we make stock reserve
P&L Dr 4
To Closing Stock Reserve 4 (Being Loading Reversal to Bring Closing Stock on COst)
 
entries can be passed in other ways also net effect will be same
make accounts from above entry for better understanding

Miteshmitesh answered 1 year ago

so loading and stock reverse is same ?
 

RaviRavi Staff answered 1 year ago

yes

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