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whether credit sales should be added to sales when calculating opening stock
Replies (2)
Yes
both cash and credit sale should be considered but after reducing profit part from sales i.e. margin.
Closing Stock + Cost of goods sold - Purchase = Opening Stock
both cash and credit sale should be considered but after reducing profit part from sales i.e. margin.
Closing Stock + Cost of goods sold - Purchase = Opening Stock
Yes its right.
The amount of closing stock (properly valued) is used to arrive at the cost of goods sold in a periodic inventory system with the following calculation:
Opening stock + Purchases - Closing stock = Cost of goods sold
The opening stock for the next accounting period is the same as the closing stock from the immediately preceding period.
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