I came across a question in kaplan revision kit for MA where i am supposed to calculate closing balance for materials inventory account:
Opening balance 15,000
Materials purchased 176,000
Issued to production 165,000
Materials written off 4,000
Returned to supplier 8,000
Returned to stores 9,000
The answer is 23,000 and returns to supplier is added but returns to store is deducted, why?
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MAReturned to supplier? (Accounting for materials)
Sorry i meant return to store is added and return to supplier is deducted
because those returned to stores materials were issued to production but for some reasons they are sent back to the stores so they are added to closing balance
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