Writing off unusable stock


I buy job lots of goods to sell, sometimes within that job lot may be something that is damaged or unsellable.

How do i account for the write off of the value of this?

I dont use the “stock” account just “general purchases”.

The money spent is still the same but obviously when coming to do a current stock valuation for “closing stock” these goods will not be there, how should this be accounted for?


The closing stock is tracked either continuously by using an inventory system or by completing a stock take on a periodic/annual basis, you then need to journal the opening and closing stock figures, which is detailed in the posting below:

thanks, i dont use an inventory system, so there is no need to journal off the discarded stock at any point? I essentially just lose it from my assets when doing stock take and it’s value become part of the cost of goods sold?

The link doesn’t work, can it be updated please?

This was a link to our old forum, we’ve now migrated the post which you can view here.