Stock Transfers

George Tse

Hi need help with stock transfers ??? :confused1:

Ok.......

Shop A

Quarter 1 Sales 500 Transfer out 10
Quarter 2 Sales 600 Transfer out 20
Quarter 3 Sales 700 Transfer out 30
Quarter 4 Sales 800 Transfer out 40

Shop B

Quarter 1 Sales 600 Transfer in 10
Quarter 2 Sales 700 Transfer in 20
Quarter 3 Sales 800 Transfer in 30
Quarter 4 Sales 900 Transfer in 30

As you can see for quarter 4 Shop B only received 30 stock when Shop A sent 40 stock.

My question is, what are the total sales of Shop A and Shop B for each quarter ?? and what account entries would I need to balance the consolidation accounts ?? :confused1:

George Tse

really need help ???

visha

In consolidated accounts both shop A and shop B are treated as one business.

Therefore sales from A to B are not sales at all but stock transfer at a selling by shop A. When consolidating we have to DEBIT the sales a/c by the transfer value to shop B.

The shop B sales are true sales. But it's purchases need to be adjusted, because purchase from shop A is not considered as purchases but stock transfer at a selling price by shop A. When consolidating we have to CREDIT the purchase a/c by the transfer value from shoip A