Inventory

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SAM KOSHY (Querist)
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26 October 2010 Dear sir,

The closing stock value (Inventories) in balance sheet as at 30-09-2010 is US$ 70,0000.

But the actual stock value after the physical stock check is found to be US$ 60,0000.

How to write off the difference US$10,000 from the balance sheet as at 31-10-2010.
US$10,000 worth items are actually not in the stock.

which entry to be passed to write off US$10,000.

Sam

Thrissurkkaran Ishtan

Thrissurkkaran Ishtan (Expert)
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26 October 2010 Debit "Difference on stock take"
Credit "Stock"

In the P&L, closing stock will be shown at $60K and $10K will be shown as exps

In the BS $60K will be shown.

SAM KOSHY

SAM KOSHY (Querist)
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26 October 2010 Sir,

Closing stock a/c( Balance sheet)- Dr.
Inventory expense a/c ( P&L) - Cr.

Is the above journal entry correct.

I am different ERP software and can not journalise the closing stock and a P& L expense item. What to do?

I can journalise the closing stock and purchase account.

Please reply

Sam

Thrissurkkaran Ishtan

Thrissurkkaran Ishtan (Expert)
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26 October 2010 I am not sure which ERP you are using. It is advisable to consult the ERP consultant in this case.

If the system does not allow journals in stock then you may be enter closing stock as $60K first. This will automatically adjust the consumption as opn stock + purch - closing = stock consumed / expensed

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