Stock catagorisation

Accounting
1

I run (just setting up) a small business selling rare breed beef. We have bought the animal, have the slaughtered and sell the beef directly to the customers.

How do I account for the following:
New cows I buy?
Cow which are born into our herd (what nominal value do I give them?)
Once we have converted cow to beef, how do I account for that process?

One final question; we have started the business a few years after we bought our first cattle. Although I’m a sole trader at the moment, how do I account for the business having an opening stock value which it has, in effect, inherited.

Sorry for what are probably basic questions; I’m very grateful for any help you can give.

Cheers,
Simon

2

Simon, I would have a chat with your accountant on these points. We only tend to deal with system related questions here, I will ofcourse leave this open for any other community members to comment on.

You could also post this question at UK Business Forums where you are more likely to garner a response.

3

You may find the following HMRC guide useful:

http://www.hmrc.gov.uk/helpsheets/hs232.pdf