DESKTOP EDITION CLOUD EDITION SERVER EDITION GUIDES FORUM

Inventory accounting using Opening Stock + Purchases - Closing Stock


#41

You don’t do the closing stock until the last day of the financial year.
After you have done a stock count on the last day and worked out the stock valuation you then you would do an adjusting Journal as illustrated earlier in this topic


#42

i try to insert in journal entry but final at the summary will at suspense account…


#43

Can you show a screenshot of the Journal ?


#44

If you were doing a Journal entry for Year End Closing Stock then it should look like this.


#45

i dun have opening stock, the i got add purchase, but the purchase at the end of 2015 only pay 3k.

means tat i add purchase 100k
only pay 3k
then balance stock is 97k

so how i key in?


#46

On the last day of the financial year you transfer your BS to the P&L Opening Stock account, as per the first two lines of the Journal above. The Stock on Hand account is now zero.

Then you take up the value of your year end stocktake by debiting Stock on Hand and crediting Less Closing Stock as per the last two lines of the Journal above.

Your Purchases account should equal the amount spent on buying Stock through out the year.


#47

I started entering balance sheet and entered opening stock. i am not using inventory, and i am taking stocky value manually on every month. How can i enter the closing stock value, to prepare Trading profit and loss account.


#48

Normally, the Opening/Closing Stock process is done on a yearly basis but it can be done on a monthly basis if you follow the steps below.

  1. At the end of the “first month” do a Journal that transfers the BS Stock on Hand to the P&L Opening Stock - for this exercise I entered the Opening Stock as 1250.00.

  1. At the end of the “first month” do a Journal that takes up the value of the (closing) stock on hand

  1. Then at the end of each month you edit (not create) the previous months closing stock Journal , (2) above, by changing the date and the stock values. Continue this process until the last month of the year.

  2. In the next year you “start” the process all over again, at the end of the first month do (1) & (2) and for the next months do (3)


#49

In the BS Asset section you create “one” account called Stock on Hand (NOTE: do not create separate opening/closing stock accounts in the BS). To enter the opening stock value go to Settings - Chart of Accounts and click "Edit: next to Stock on Hand, then click Starting Balance and enter a value & Update.

I’ve spent an hour looking for the ‘BS asset section’! Where is it please?


#50

Sorted