Hello,
Our client is a trader (does not keep stock as Vendor purchase material is directly sent to the Customer), but this time they have some stock present with them.They have physically valuated the stock now.How to make the accounting in such a scenario....which GL to be opened & which accounting entries to be made.
Please help.
Regards,
WNR
Hi,
Are you maintaining accounts manually or using computer? if maintaning accounts on computer which software are you using for this purpose ?
Pls specify.
Regards
-Uday
Using SAP....the solution which we had provided to the client is
Closing stock a/c Dr
Purchase a/c Cr
They are not ready for this entry.
SInce the company is only a dealer or trader, the Inventory Module in SAP cannot be used. So , amanual entry has to be passed
how to pass the manual entry....which accounts to be used???
For learning about transactions you have to go to the site www.freesaptutorials.com details are available this website.
by the way your client using SAP sytem (Software) but entries are not paased in SAP is just surprising.
I think your client wants the entries for stock physically available, if so suggested entries are:
For excess stock;
Relevant stock item Dr.
Sundry purchases/stock adjustment a/c Cr.
For shortage:
Reverse entries to be passed.
Hope it will beneficial to you.
-Uday
Please don't suggest stupid type entries to your client as u written down-
[Closing stock a/c Dr
Purchase a/c Cr]
Before any suggestion you should ask first to seniors because it will affect your personality and image.
-uday
| Originally posted by : CA Uday Bhan | ||
 |
Please don't suggest stupid type entries to your client as u written down- [Closing stock a/c Dr Purchase a/c Cr] Before any suggestion you should ask first to seniors because it will affect your personality and image. -uday |
 |
Please check the following :-
[Closing Stock a/c – Real a/c – Debit what comes in.]
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.
Thats the reason Closing stock Dr, Purchase a/c Cr...entry was suggested...
Would appreciate if proper language is used in the forum.
regards,
wnr
Dear,
You are trying to tell Fundamentals of Accounting that all true.
As for as language concerns stupid word was used for entry not for you.
Yes for creating closing stock GL and transfer entries in this GL is right way to go on website as suggested earlier.
CAclubindia
