How can i enter journal entry for closing Stock every month end, and this should be carried forward as opening stock of next month. I am not using inventory . Physical stock is valued at the end of every month.
You asked this same question several weeks ago. It was answered. Please do not double-post questions.
@Ramesh_Meena you ask the same question back in Nov '16 in the topic “Facing difficulty with inventory” and the answer provide then hasn’t changed. That topic link was also provided to you in Jan '17 in the topic “Opening and closing stock” where asked a similar question. For the third time you have asked the same question and for the third time please find the identical answer below.
@Ramesh_Meena - Nov '16
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.
@Brucanna - Nov '16
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.
- 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.
- At the end of the “first month” do a Journal that takes up the value of the (closing) stock on hand
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.
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)