Hello everyone,
While entering opening stock in new software during the year (changing software) the stock added also appear in balance sheet as -ve figure.
How to enter the opening stock in new software, is my question? So that it does not appear anywhere in balance sheet.
1. Create a new account: "Opening Stock" (or similar name) in the Chart of Accounts.
2. Debit the "Opening Stock" account with the value of the opening stock.
3. Credit the "Retained Earnings" or "Reserves" account with the same amount.
Additionally, consider the following: -
Ensure the new software allows for the creation of a dedicated "Opening Stock" account. -
Verify that the journal entry is properly reflected in the financial statements.
CAclubindia
