會計Trading and profit and loss account

呢句既意思係：在closing 時 ，inventory 既cost （成本）係 $620000，而net realizable value （可變現值）係$570000。

根據會計的穩健保守概念，應以兩者中（cost同NRV）取較少的一個，所以在這題目的closing inventory 應該用$570000。

＊net realizable value 是一預計貸物可賣出多少錢，當貸物售價低於成本時，便用此入Trading account ＊

如有任何錯誤，請各位指正 thz~

The cost of inventory is $ 620 000 at the year ended date.

The net realiable value is $570 000 at the year ended date.

According to Hong Kong Accounting Standards 2 Inventory, inventory should be measure at the lower of cost and net realizable value. (btw, what the above anwser mentioned that prudence concept is also correct. but using accounting standard in answering question is better.)

Cost is the money that u have paid to the supplier plus any related direct expenses (Example can be duty imposed.)

Net realizble value is the estimated selling price minus the cost necessary to bring the inventory into saleable conditions. For example, if some inventory is destroyed and u may need to pay for someone to maintain it then it is the "cost necessary".

The closing inventory is $570 000 and the double entry is Dr Trading account Cr. Inventory by $50 000.