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Inventory Journal Entry

Hello Gurus,

Can anyone please educate me on the journal entry that will be posted in the following cases:-

The Qnty & rate while making the PO is 100kgs @ Rs.10/kg . I receive the goods (all 100 kgs) @ Rs 10/kg & posted a GR. Now, before posting the IR, the Vendor says that, the price has now been revised to Rs.11/kg & the management of your company agrees that the Vendor would be paid @ revised price.

What would be the journal entries in the following situations:-

a) All 100 kgs are still in stock.

b) 50 kgs are already issued to production.

c) All 100 kgs are issued to production.

I would be really grateful, if someone can reply to this query.


Debojit Dey

Former Member
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