Closing Opening Stock Entries

Hi

Im well aware this question has been asked in many forms before. We have an end of year balance date at 31/3.

Attached are the entries which I think are correct, to reflect the opening stock and the end of year closing stock. Presumably the date of these entries should be 31/3. However when I use this date the Stock on hand for the “old financial year” is the same as the “new financial year” in the balance sheet. Any help would be greatly appreciated as I hace been trying to sort this for weeks, and have now virtually given up.

Many thanks
Grandpa

The opening stock entries should be dated 1/04/2019
The closing stock entries should be dated 31/03/2020

Are you using the Inventory tab?
If so, then these are not needed at all

Also why do you have 3 accounts Opening Stock, Stock in Hand and Closing Stock?

You should have just one account Stock in Hand

Hi Joe91

Thanks for your reply. No I don’t use the Inventory tab.
I set up the book of accounts as at 1/4/19 so guess I don;t need to do anything other than the closing stock as at 31/3/20.

Many thanks
Grandpa

@Grandpa - have you read this topic Inventory accounting using Opening Stock + Purchases - Closing Stock

If at 1/4/19 you entered a Starting Balance for the Stock on Hand as 1916.76, then the Journal you displayed above as at 31/3/20 is correct. The first two lines, transfers that start of the year BS > Stock on Hand (1916.76) to the P&L > Opening Stock at the end of the year (31/3/20) so that your “total inventory” in the P&L at the year end (31/3/20) becomes Opening Stock + Purchases. From this “total inventory” you transfer back to the BS > Stock on Hand your year end (31/3/20) inventory valuation (2048.25) being the Closing Stock using the second two lines.

That sounds correct. Lets insert dates and values into that statement for clarity.
However when I use this “Journal” date (31/3/20) the Stock on hand (2028.25) for the “old financial year” (31/3/20) is the same as the “new financial year” (1/4/20) in the balance sheet.

Your journal has replaced the 1/4/19 Stock on Hand (1916.76) with the 31/3/20 Stock on Hand (2048.25). So between one minute to midnight on 31/3/20 (2048.25) and one minute past midnight on 1/4/20 (2048.25) nothing has changed.

Hi @Brucanna.

Thanks for the explanation. Brilliant.
Cheers
Grandpa