Dear all !
In a trading company , stock value is not tallying with Purchase - Purchase return - COGS value.
Item Valuation method is Moving average.
Purchases during 10-11 -
Rs.5,43,40,640.18
Less : Purchase Return----
Rs. 22,22,197.93
-
-
Rs. 5,21,18,442.25
Less:Cost of Goods Sold----
Rs.4,78,70,113.70
-
Closing Stock 31.03.11----
Rs. 42,48,328.55
Stock showed in SAP----
Rs. 46,86,369.28
=====================================
Difference----
Rs. 4,38,040.73
There is no opening balance hence auditor ask query for the difference and please explain how the difference come.
Kindly let us know idea on this.