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Journals stock in SAGE

LondinaLondina Experienced MentorMAAT, AAT Licensed Accountant Posts: 814
Hiya

a basic question, hope someone can help me.

I need to account stock purchased of £600 and sold of £1000 for the current year end 31/03, can somebody please let me know which journal I have to do in SAGE?

Comments

  • groundygroundy Trusted Regular Registered Posts: 495
    If the sale and purchase have gone through bank account then would they nor be payment and receipt postings rather than journals?
  • LondinaLondina Experienced Mentor MAAT, AAT Licensed Accountant Posts: 814
    thanks but nothing to do with the bank account, I need to record the stock therefore this has to be done by journals!

    otherwise in the opening/closing stock account which figures you will find?:huh:
  • martin1971martin1971 New Member Registered Posts: 6
    More information is required, is the stock purchased on credit? for cash? sold on credit? for cash?

    Generally entries for stock purchase/sale are as follow:

    Stock Purchase:
    Dr: Stock
    Cr: A/P

    Stock Sale:
    Entry 1
    Dr: COS
    Cr: Stock
    Entry2
    Dr: A/R
    Cr: Sales

    Hope that helps.
  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    Londina wrote: »
    Hiya

    a basic question, hope someone can help me.

    I need to account stock purchased of £600 and sold of £1000 for the current year end 31/03, can somebody please let me know which journal I have to do in SAGE?

    I'm confused by the question.
    Purchases of £600 are Dr Purchases; Cr Bank OR Creditors (depending on whether they were paid for or on credit).

    Did you sell the £600 for £1000? Or did you sell £1000 which included £400 of opening stock?

    What is the balance of stock at the beginning of the year?
    What is the balance of stock at the end of the year?
  • martin1971martin1971 New Member Registered Posts: 6
    I believe she meant purchase of stock for £600 and the sale of the same stock for £1000 creating £400 gross profit.
  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    martin1971 wrote: »
    I believe she meant purchase of stock for £600 and the sale of the same stock for £1000 creating £400 gross profit.

    Thanks :)

    In which case, there are no journals.
    The purchases and the sales should have been completed in the normal postings.
    Dr Purchases (not stock) for goods bought, Cr Bank or creditors
    Cr Sales for values sold, Dr Bank or Debtors.

    Stock journals relate to opening and closing stock, not purchases and sales of items in the year.
  • LondinaLondina Experienced Mentor MAAT, AAT Licensed Accountant Posts: 814
    oh guys thanks so much for the replies, I realised I did explain myself really badly!

    Try to put it in a simpler way,what I meant was:

    Purchase invoices
    1)quantity 50 £230
    2)quantity 40 £100
    3)quantity 30 £270

    Total purchase £600

    Sales invoices
    1)quantity 50 £500
    2)quantity 40 £500

    Total sales £1000

    So obviously 30 pieces are left worth of £270, how to account these?
    by doing journals?:
    DR Stock Balance sheet £270
    CR Stock P&L £270

    Then for the new financial year? Sure by looking the accounts you would like to find out straight way how much stock value is left? oh I'm so confused in such a basic thing!!:001_unsure:

    thanks for any help!
  • martin1971martin1971 New Member Registered Posts: 6
    Londina asked about purchase and sale of stock not opening and closing stock entries. I never said that purchase and/or sale of stock should be done using journal, I basically explained what entries are made in accounts when you purchase/sale stock.

    As I said before, more information is required in order to provide correct answer.

    edit:
    Your entry is correct
    Dr Balance Sheet
    Cr P&L

    Thats all, in your new financial year, balance in BS is your opening stock in new financial year.
  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    martin1971 wrote: »
    I never said that purchase and/or sale of stock should be done using journal, I basically explained what entries are made in accounts when you purchase/sale stock.
    I wasn't implying otherwise, sorry if it came across that way. I was simply adding more clarification to your already correct answer :001_smile:

    Londinia, yes, you have it right. :)

    Additional info:
    Remember that stock is valued at the lower of cost price, and the net resaleable value.
    For example, if the 30 pieces that cost £270 could only be sold in the future for £200 (because they were damaged or obsolete for example) the closing stock journals would be at a value of £200 not £270.
  • PoodlePoodle Experienced Mentor Registered Posts: 711
    Closing journals Sage

    Hi Londina

    I think that I now understand your question.

    You have already made and accounted for the purchases and sales in the year and it is only the final stock figure that you are having a problem with.

    In Sage for your closing stock figure post a journal dated the last day in your accounting period 31/03 as follows:

    Dr 1000 Stock (BS) £270.00
    Cr 5201 Closing stock (COS) £270.00

    Then in your new accounting period post a journal dated the first day 01/04 as follows:

    Cr 1000 Stock £270.00
    Dr 5200 Opening stock(COS) £270.00

    These codes are already in Sage as a default and so when you now run the P& L report it will now brng in the stock and produce the right result

    Hope this helps

    Poodle
  • LondinaLondina Experienced Mentor MAAT, AAT Licensed Accountant Posts: 814
    faerie9 wrote: »
    Additional info:
    Remember that stock is valued at the lower of cost price, and the net resaleable value.

    I remember this is the case, but why do we need to use the FIFO/LIFO method sometimes?

    Many thanks to the others for the replies, you have been very helpful and kind!!:thumbup1:
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