Inventory

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 November 2010 sir
what is the journal entry for Closing Stock. We are using inventory on manually and accounts are keeping Tally. so how to enter the Tally for losing stock journal entry.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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08 November 2010 The value of closing stock is not available ready hand in the books of accounts. It is specifically ascertained at the end of the accounting period by physical verification of stock and its valuation at cost or market price whichever is lower.
Thus, by recording the journal entry for Closing Stock, we are in effect bringing the value of Closing Stock into books.
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.

Querist : Anonymous

Querist : Anonymous (Querist)

08 November 2010 sir
i am talking about at the time of Finalization of accounts. So balance sheet affecting and also trading account.
I think ;ie
For balance presentanion
debit Closing Stock A/c
credit Purchase A/c

what is the trading a/c jounal entry. for tally

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