Hi I am a new start up reading the forums it states to put the stock brought as general purchases and the sales as general sales. At year end what is the journal for getting the correct amount into the balance sheet will it just be the value of the stock at year end to closing stock ?
Hello @ruautos
The below article may help
https://support.quickfile.co.uk/t/journalling-opening-and-closing-stock-totals/15272
amazing thanks for your help
Correct. At the end of your first year you’d just journal the year end stock value as credit “closing stock” and debit “stock”. At the end of a second and subsequent year you’d also need to journal the previous year’s year-end stock value as credit “stock” and debit “opening stock” in order to get the correct cost of sales for the year - the opening stock you started with, plus everything you purchased during the year (general purchases), minus what you had left at the end.
(Note if you’re VAT registered and not on flat rate, then all these figures for the year end stock valuations are the ex VAT net values)
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I am start up so no opening so the double entry will be dr stock cr closing stock at the end ?
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