Stock - lost s through vandalism (Unit 5)

System
System Posts: 100,534 🤖 Admin 🤖
Hi

Can you help. I'm doing the Full Skills Test 2 in the BPP Assessment Kit book (Unit 5).

Task 8 (of Full skill test 2).
Entering the adjustments to the Trail Balance.

Stock in the original Trial Balance is DR £72,456.00 (date as at 31/03/2005).

The adjustment is because following vandalism many items had to be thrown away, so only a limited amount of stock was on the premises at 31st March, valued at a cost of £21,692.00

What are the adjustment entries?

In the answers at tha back of the book it has

Dr Stock £21,692.00
Cr Stock £21,692.00

Can anyone help as I just don't understand.

Thank you

Karen

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Stock - lost s through vandalism (Unit 5)

    I think it's because stock is an asset, and will be a credit entry of the actual stock in the P and L and a debit entry in the balance sheet.
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