Question

Stock adjustment account is debited with _________ and credited with __________.

• A. Surplus, Shortage of stock
• B. Shortage of stock, Surplus
• C. Excess, Loss
• D. None of these

Answer 1

The correct option is B Shortage of stock, Surplus

While doing the physical verification of stock, some mismatches are found. These may be shortage or excess of stock. All such shortages of stock will be debited and excess stock should be credited in stock adjustment account.