Accounts MONTHLY closing stock entries Where the company
- Slides: 13
Accounts MONTHLY closing stock entries Where the company desires to put the closing stock in the ERP, every month Closing Stock : Closing stock is the amount of inventory that a business still has on hand at the end of a reporting period. This includes raw materials, work-in-process, and finished goodsinventory. Source : It has to appear in the P & L a/c as well as in the B/s as an asset. The formula is Current Month Stock - Last Month Stock = Increase Decrease stock.
Let see how the accounts dept will work ? • Journal entry of Stock. • Review Balance Sheet & P & L effect after every entry.
Monday, August 18, 2014 First screen – This is the 1 ST April 2014 position
Start the Accounts Voucher For April end ( On 30 th April) opening stock 18587006 closing stock 22587006 inc dec in stock 4000000
This entry is done So, Action is reflected in balance sheet and profit and loss account as required in balance sheet, stock comes to correct position
And in P & L account The stock comes to correct position too
Now, we review for May 2014 Again stock gets increased opening stock 22587006 closing stock 24112006 inc dec in stock This JV entry is done For the “increase value” only 1525000
Now Balance sheet as on 31 st May, 2014 Balance sheet is ready till 31 st May.
P & L from 1 st May to 31 st May, 2014 is : P & L Account is also ready
Next example will show you If “decrease in stocks” Next month in June, Stock is decreased opening stock 24112006 closing stock 20778605 inc dec in stock -3333401 This time we pass a JV entry as under
Balance Sheet as on 30 th June, 2014. Balance sheet is ready
P & L from 1 st June to 30 th june, 2014. Profit and loss account is also ready, This is a credit ( Cr ) entry This has the effect of reduction in profit
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