I need to know that in stock trading with Associate if associate seller and parent buyer, so y closing stock Cr means reduced? Plz reply
Sorry, I don’t understand the question. Please explain another way.
Double entry of intra group trading with Associate( if associate is seller) is CR (dr) n stock (Cr) . Here parent is buyer so closing stock should increase but y we crediting stock?
I think when profit is reduced then cost of sales should be reduced too. Stock is made from opening inventory + cost of sales – closing inventory. Maybe someone can explain better.
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