As per my understanding Credit Control Account is a liability on balance sheet. After i increase my stock, the Credit control account is showing under Current Assets. Why is that so?
Hi @syed
If your Creditors Control Account (nominal 2100) is showing as an asset, it’s likely that there have been more payments to suppliers than there has invoices.
For example - do you prepay for any of your invoices before they’re issued?
Hi Mathew, In my previous email I have sent to you, I have explained the situation. My original profit and loss was showing gross loss. So I tried to increase the closing stock to make a gross profit. So I debited the closing stock and credit trade control account as there was no other nominal available. Please help me to understand what did I do wrong and what was the correct entry?
Hello @syed
We do actually have a guide on opening/closing stock balances in the knowledge base which may be of some help: Journalling opening and closing stock totals
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