Reclamation Yard Accounts

slick

Dear Members,

Any members familiar with 'Reclamation Yard Accounts'? I'm in the process of drafting a set of accounts for my client who took a business over last year. Most of the stock is reclaimed from building sites, purchased from auctions, donated etc. i.e. some stock items have a cost & some don't! If anybody's ever been to a small reclaim yard they will see generally what appears to be a load of junk, but junk that has a sales value to customers wanting somthing different. My question is how does one go about valuing the stock in absence of a stock itinery? Would a broad brush estimate suffice? or is there an average sales margin for these types of businesses that could help with working back the stock figure? Also some stock items may not sell for months at a time

My client does keep a rudimentary record of sales & purchases most of which is transacted in cash! Therefore, I am keen to ensure the accounts make sense.

Any suggestions, pointers or advice gratefully received. Thank you.