Stock ledgers mapping

A/c entries 523 views 1 replies

Can any one explain complete mapping for stock ....during sale / purchase

like for ex: 
1) when we purchase , what are the stock related ledgers are  affected 
and  under which group (assets, liabilities, income, expense) this ledgers are placed.
 
similarly for sale .
 
2) Is the stock closing ledger is affected after every purchase / sale transaction ?
 
3) How to enter opening stock ?
 
4) can the  stock related ledgers display in Trial balance?
 
5) While calculating the worth of stock ...how to take the price per unit for the stock
is this last purchase transaction value or avg price 
If in the case of avg price , then how to calculate that ? 
 
Was wondering if anyone could explain me this.....
 
Assumption: It is a small trading business , where purchasing and selling goods happends and not a manufacturing company 
 
Replies (1)

Closing stock will effect after purchases and sales of goods. Opening stock +  Purchases - purchase returns - Sales + sales returns = closing stock. 

Present year closing stock becomes opening stock of next year. 

closing stock is an adjustable entry so no account appears in trial balance. 

stock calculations normally on lower prices or average prices.but not market price. that is why it cannot appear in the trial balance. 

for stock calculations there are 3 methods. follow cost accounting rules.


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