Hi, I had been putting my purchases of items used and sold in my shop under stock.
My accountant asked me to give a closing stock. But on reading the Forum it was suggested that I move my Stock items to General Purchases.
I seemed to manage to do that, in the Balance Sheet, however this has now affected my profit and loss account and I do not know how to change it.
Can anyone help me. My Profit and loss figures have gone from a positive profit, to a huge negative one now, which cannot be right.
My notes said to make a journal to my P & L and balance sheet for the correct stock figures, but I do not know what that actually means.
You can only have stock allocated to either the balance sheet or the P&L. Normally you’d report your closing stock at the year end, that means the value of any stock held on premises, this should sit on your balance sheet.
Any stock acquired and sold on would feature on a P&L code like “General Purchases”, that way it’s offsetting against your profits.
Thankyou.
How do I enter my closing stock?
I have a figure for it but not sure how to do an entry, or where?
You’d need to defer to your accountant on that one. It would typically involve posting a journal moving any adjustments from/to the balance sheet. It depends on where the postings were made.
Thankyou. I don’t think my accountant is very aware of Quickfile at the moment. He has only had a cursory glance at the print out that I produce.
Appreciate the quick response.
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