Opening Inventory is debit on the Income and Expenditure account (Profit & Loss).
Closing Inventory is a credit on the Income and Expenditure account (Profit & Loss).
Closing Inventory is a debit on the Balance Sheet which is offset by a liability or capital item such as a loan, creditor or increase in owners capital.
Eb
Edited at 03 Jan 2015 03:36 PM GMT
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