Rajiv Gupta
Jun 18, 2009, 11:05 AM
Dear Sir,
While finalizing the annual accounts we show the closing stock in our trading account while inventory is the part of current assets so we are also showing the inventory in our balance sheet.
But question is that inventory should come only in balance sheet not in trading account also.
Why we have to show the inventory simultaneously in trading account as well as in balance sheet.
While finalizing the annual accounts we show the closing stock in our trading account while inventory is the part of current assets so we are also showing the inventory in our balance sheet.
But question is that inventory should come only in balance sheet not in trading account also.
Why we have to show the inventory simultaneously in trading account as well as in balance sheet.