I am doing the End of Year accounts for a client, but I’m not used to dealing with ‘stock’.
It has always baffled me.
My client entered an opening balance when she transferred from manual books to Quickfile.
She took the figure for last years closing stock and journalled:
DR 5200 (opening stock)
CR 3000 (capital & reserves)
Stock is currently showing 0
I am confused as to when the figure shows in stock 1001 and what I am trying to achieve at year end to adjust the stock figures. Should stock be in Capital & Reserves or should it be moved to 1001. Sorry. Confused.