Every time I buy stock it is added as an asset but sales do not reduce the stock value. It seems that I have far more stock than I actually do but I’m not sure why or how to reduce the stock when we sell something.
When you buy stock it should be tagged to purchases not balance sheet stock.
At year end you would do actual stock count and do journal for closing stock as follows
Dr Closing stock (balance sheet)
Cr Closing stock (P&L)
Should I journel all the stock from 1001 to general purchases then?
yes you can or select all while at the code listing and select option move to new code
What are the codes for the year end closing stock to make sure the Dr is on the balance shee and the Cr is on P&L?
Dr 1001 Stock
Cr 5201 Closing Stock
Thanks. Is this the case even though I have now transfered all stock from 1001 to general purchases?
above entry is for actual stock count at year end
Thank you for the help
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