Accounting question

[FarhanArif]

If 100 units are purchased during the year ,20 units are given away as marketing expense ,10 units are withdrawn for personal use 5 units are damage and wasted. So where should I deduct these 35 units ?from net purchases or Ending inventory while make the profit and loss statement

 

[Triest123]

Under Periodic Inventory System

Dr Marketing expense
Dr Drawings
Cr Purchase

If the damage and waste are treated as "normal loss",
No accounting entry is required as the cost of goods sold will automatically absorb
the normal loss.