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Hi sir,
Dr:Drawing
Cr: Purchasesbut how we can reduce inventory at the end of the period? I think it should be like this:
Dr:Purchases
Cr:InventoryIs this right? i couldnt find on internet.Need your help thanks in advance
We do not need to reduce inventory at the end of the period.
The owner will have taken the goods during the year (and the entry is as you have typed).
At the end, the inventory is counted and the inventory entry is made – the inventory at the end of the year will be the inventory that is left in the business.
I do suggest that you watch my free lectures. They are a complete free course for Paper FA (F3) and cover everything needed to be able to pass the exam well.
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