Hit a wall...

Flying Scarlet

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

Monsoon

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.

T.C.

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.

Flying Scarlet

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.