Inventory on Balance Sheet accumulating?
Periodic Inventory

Hello, i have done stock-in-hand booking as company’s asset. the Profit Loss Statement looks alright but the Balance Sheet is not because the inventory is accumulated from previous periods which is wrong. I think above highlighted step needs to be performed but i am little bit lost as how to do it. Any pointers would be highly appreciated.

If the P&L looks okay, then the balance sheet should not be way off.

If your accumulated inventory seems high, your cost of goods sold (COGS) should be low. Can you check?

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