Hi there! I’m a sole trader fitness instructor that on one occasion only bought in a load of fitness clothing to the tune of £9K. I’ve then sold (in total) over £6K of that stock at various fitness events. I’ve done a stock take and found I’ve got about £3K worth of stock on hand, so the sums add up (just about!) The problem I’m having is where to show this in the accounts. I’ve bought it in and sold some out, with some left on hand. How do I show this as a sole trader? Thanks for your help. (Sorry, I checked the Knowledge Base first but could only see ‘Delivery Notes’ under the ‘Stock’ heading.) Cheers! Cris.
Generally, I don’t deal with stock so can’t really answer it myself. However, these may be of use to you:
http://community.quickfile.co.uk/t/how-to-account-for-stock/1657
or http://www.qfaccounting.co.uk/detail.aspx?id=4828867 (Old QF Forum)
When you got the stock that would be booked as purchases. On sale you need to book sales. Stock left over at year end would be counted and accounted for on lower of cost or Net realisable value which ever is lower and book in your accounts as follows
Dr 1001 Stock (balance sheet)
Cr 5201 Closing Stock (P&L)