Stock Transfers

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George Tse
George Tse Registered Posts: 241 Dedicated contributor 🦉
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:

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  • George Tse
    George Tse Registered Posts: 241 Dedicated contributor 🦉
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    really need help ???
  • visha
    visha Registered Posts: 218 Dedicated contributor 🦉
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    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
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