We run a hire business, and some of our equipment has not been returned. We have charged the client and replaced the item, however, how do I reflect the loss in the stock nominal code?
Do I create a journal entry and use the ‘closing stock’ nominal code to write it off? Is closing stock shown as a loss?
Thanks for your reply.
The new equipment is roughly the same price, however surely I need to remove something from my ‘Stock’ nominal code otherwise my stock figure is just going to artificially increase.