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How to post Stock

LondinaLondina Experienced MentorMAAT, AAT Licensed Accountant Posts: 814
in General AAT student discussion
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 journals I have to do?

Comments

  • Sonny_LSonny_L Well-Known Registered Posts: 201
    I was expecting a query on the entries for closing stock, but the transaction you described should have simply been dealt with as a purchase and sale through the bank account?

    Interpreting you differently, stock is valued at the lower of cost and net realisible value. If you mean the stock held cost £600 and will be sold, rather than has been sold, for £1000. The closing stock valuation will be £600.

    Dr closing stock £600 (bal sheet)
    Cr closing stock £600 (p&l)
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