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Hi!
If I have sold my inventory on cash, is the double entry ?
Dr cash
Cr salesIf yes, then my inventory will be at the same amount in the ledger as before sales and the closing balance will be overstated as I haven’t made any entry related to inventory.
Thank you!
Yes – that is the entry.
The inventory account is adjusted at the end of the period and does not keep a day-by-day record.
You should watch the free lectures on inventory (our lectures are a complete course for F3 covering everything you need to pass the exam well).
oh okay.
Thanks for the reply and providing a great website 🙂 ( which is free)I have watched the lecture on inventory and all my doubts and confusions are cleared. (you have nicely set up the 3 connected examples)
Great lecture Sir!
And providing free is just in your name, as “Moffat” in Urdu language means “free”. 🙂
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