Hello Chris.
1. How should unrealised profit be treated?
-The answer is DR cost of sales and CR inventory.
-Kindly explain why do we need to DR COS?
Thanks.
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consolidation
8y ago#1Hi,
We have to reduce the profit made on the sale of the inventory, which is part of our trading operations, hence as cost of sales is part of our trading account it seems appropriate to make the adjustment here.
Thanks
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