Stock transfer Entry

dear all
we have to transfer closing stock to next financial year. we have to closed books. what will be journal entries for closing stock transfer. please help
Replies (6)
Quick Summary
This discussion clarifies the journal entries required to transfer closing stock to the next financial year when closing the books. It explains the debit and credit entries for opening and closing stock accounts, and how they relate to the trading account or cost of sales. The conversation also briefly touches upon the treatment of working capital interest charges in relation to finished goods and tax deductibility.

Opening stock a/c

To Closing stock a/c

Please explain entry..op stock & cl stock.. in next year

By Opening stock a/c

By closing stock a/c

to cost of sales or trading a/c

this is when opening and closing stock left at the end otherwise

Closing stock a/c

WIP a/c

To trading a/c

 

Another issue to discuss is your working capital interest charges. They are included into the finished goods because, interest is tax deductible. That is another tax accounting aspect 

Ok thanks

Sorry I have a typo error. I meant interest charges are NOT included into finished goods due to tax deductions. Nice day

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