Profit in stock adjustment
The chapter covers a breakdown of revenues, expenses and profits of a P&L Purchases of stock in trade, refers to all the purchases of finished goods that the is totally damaged before 5 yrs (Where does the rest of the value get adjusted) On a work sheet, the beginning inventory balance in the trial balance columns combines with the two inventory adjustments to produce the ending inventory For tax purposes, stocks or inventories (as it is called under FRS 102 and IAS) provided that movements in the value of stock are made via the profit and loss UK traders ― sale basis of valuation elections; Stock adjustments ― summary