Hi sir , in order to eliminate unrealised profit still in inventory from consolidated financial statements, we have to
DR Cost of sales
CR Inventory
By debiting cost of sales, are we increasing the account or decreasing the account ? and why do we have to increase or decrease cost of sales
Ask the Tutor ACCA SBR
Cost of sales
6y ago#1COS = opening inv + purch - closing inv
Technically we are reducing the value of closing inventory
Closing inventory is a credit, so we reduce by posting a debit
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