Clusing stock entires??????????
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
17 June 2011
Dear Experts,
I am teribally confuse about the closing stock entries passed in accounts. I have seen many small business houses entering closing stock amounts directly in a accounting software (i.e. without mainting any inventory records).
Can any body expalin me in detail how to account for clousing stocks in a proper way?
Thanks in advance.
I am teribally confuse about the closing stock entries passed in accounts. I have seen many small business houses entering closing stock amounts directly in a accounting software (i.e. without mainting any inventory records).
Can any body expalin me in detail how to account for clousing stocks in a proper way?
Thanks in advance.
17 June 2011
Debit:
Closing Stock a/c
Accounts representing assets are real accounts and show a debit balance. Since by recording the journal entry for bringing the value of closing stock into books, we are creating an asset by name "Closing Stock a/c" we debit that account.
[Closing Stock a/c – Real a/c – Debit what comes in.]
Credit:
There are three possible variations in the account to be credited for recording the value of closing stock.
i. Trading a/c
ii. Goods Consumed a/c
iii. Purchases a/c
The ledger account to be credited is dependent on which account is used to reflect the value of cost of goods sold as well as the time of recording the entry.
Closing Stock a/c
Accounts representing assets are real accounts and show a debit balance. Since by recording the journal entry for bringing the value of closing stock into books, we are creating an asset by name "Closing Stock a/c" we debit that account.
[Closing Stock a/c – Real a/c – Debit what comes in.]
Credit:
There are three possible variations in the account to be credited for recording the value of closing stock.
i. Trading a/c
ii. Goods Consumed a/c
iii. Purchases a/c
The ledger account to be credited is dependent on which account is used to reflect the value of cost of goods sold as well as the time of recording the entry.
Message likes :
1 times
09 August 2011
u can also put up any query in ca club india.........eminent experts will assist you......
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- ITR 2 Short Term gain & Long term gain
- Itr 1 processing
- Reporting Income under Section 44ADA
- Off Market debit and credit transaction
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR returnFY25-26
- ITR 1: Details for showing Exempt Income
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Short Term Capital gain on shares bought and sold after 2018 onwards
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- Article ship defecit
- Bank Accounts in Balance Sheet for ITR 3
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
