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Stephen Widberg.
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Anuja Nair
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Hi sir , in order to eliminate unrealised profit still in inventory from consolidated financial statements, we have to
DR Cost of sales
CR InventoryBy 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
Stephen Widberg
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COS = 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
Anuja Nair
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