Please help lil'ol me!

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT member discussion
Morning everyone

Please help me - I am very over-tired (as in the Meriva ad!) and need some help.

Is there anyway that I can calculate closing stock, if I know every other figure on both P&L and B/S?

Many thanks guys

Claudia

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Please help lil'ol me!

    When you say every other figure on the P&L and B/S what figures have you got? I presume it's just closing stock you haven't??

    If the client hasn't given you an actual closing stock figure, then I think the only way you could calculate it would be to estimate it on a gross profit margin basis - i.e. the closing stock valuation will be a "balancing figure" to get the GP % correct based on the prior year and the clients instructions.

    Regards
    Steve

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Please help lil'ol me!

    I have a similar problem and was told by the accountant that they estimate the closing stock using sales ratio :? . Having said that I worked out that the closing stock was actually 75% of purchases on last year and the same calculation had been used on previous years.

    Sharon
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Please help lil'ol me!
    peugeot wrote:
    When you say every other figure on the P&L and B/S what figures have you got? I presume it's just closing stock you haven't??

    If the client hasn't given you an actual closing stock figure, then I think the only way you could calculate it would be to estimate it on a gross profit margin basis - i.e. the closing stock valuation will be a "balancing figure" to get the GP % correct based on the prior year and the clients instructions.

    Regards
    Steve

    Yeah, that is how we do it. Or at least to the client 'best guestimate'.

    Regards

    Dean
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Please help lil'ol me!

    Thanks for all your replies - email notifications back to not working again - grrrrrr.

    I have got some clients who refuse to do anything about stock valuations, and I was hoping that there was some sneaky way that I could tell them what it was, but as it goes on both the P&L and BS, I just couldnt figure out a way - so glad in a way that I was proved right!!!

    Accounts and tax coming thick and fast now - good times are here again!

    Claudia

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