Hit a wall...
Flying Scarlet
Registered Posts: 42 Regular contributor ⭐
Im tidying some accounts up for a friend & I have hit a wall with written off stock (the stock was seized).
Am I right in saying that the amount of stock that was written off should be taken off the Stock in the Current Assets on the balance sheet, even if this would leave a negative stock figure?
I know its straightforward but you know what its like when you have a brain burp!!
Cheers
Am I right in saying that the amount of stock that was written off should be taken off the Stock in the Current Assets on the balance sheet, even if this would leave a negative stock figure?
I know its straightforward but you know what its like when you have a brain burp!!
Cheers
0
Comments
-
Stock is the lower of cost and net resale value, of what is present on hand. If it's not on hand, its value is nil. I wouldn't try and add back what was siezed, but just do a valuation of what is on hand.0
-
I had a similar incident when a client's stock was water-damaged and then thrown out. I just used the value of stock that was left as the stock held figure. I kept a note in the accounts just in case this was questioned later.0
-
Thanks both, good job I asked.
Mind I did initally think that but when I saw the figure, I thought it must go in somewhere.
Anyways all done now.0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 318 NEW! Qualifications 2022
- 161 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 87 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 272 VAT
- 92 Software
- 273 Tax
- 135 Bookkeeping
- 7.2K General accounting discussion
- 200 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership