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Whats the Balnace of Closing stock so if we issued the
materil then the Closing stick will be dr and in case we
pirchsed the materil the closing stock will be cr
so tell me that i m correct or not

Question Posted / sajjad1

Answers were Sorted based on User's Feedback



Whats the Balnace of Closing stock so if we issued the materil then the Closing stick will be dr ..

Answer / amit guleria

Dear Sajjad.I think the point that is confusing you is that
you are clubbing 2 different system of Book Keeping to
record an inventory transaction.In General accounting we do
not book any specific entry to record the closing stock,it
is adjusting automatically(Op.Stock+Purchse-COGS=Closing
Stock).
And at the time of Purchase the Only entry is:Basic Entry

Purchsre A\c Dr.
To Cash\Bank\Party Cr.

But at the time of Sale you can not deduct your inventories
with the sales amount ,as it includes the profit element as
well.

But as per Cost Ledgers we do specific accounting For
Materials.And there your Entries are correct as the do not
consider the profit element.

Is This Answer Correct ?    1 Yes 0 No

Whats the Balnace of Closing stock so if we issued the materil then the Closing stick will be dr ..

Answer / vaishali

if we issued the materil then the Closing stick will be cr
and in case we
pirchsed the materil the closing stock will be dr

Is This Answer Correct ?    4 Yes 5 No

Whats the Balnace of Closing stock so if we issued the materil then the Closing stick will be dr ..

Answer / sajjad1

Dear Vaishali i m going right beacause the balance of
closing stock is cr
when we made purchase then passind this entry
purchase (Material/item) (Dr)
Closing Stock (Cr)

Issued Material the it is
Closing stock (Dr)
Material/item (Cr)
here Closing Stock will automaticaly adjusted closing stock
is our Revenue so due to this its balabce is cr anything
else my id is bbuterfly143@yahoo.com so we can easily
Discused abput this Thanks Take Care

Is This Answer Correct ?    1 Yes 2 No

Whats the Balnace of Closing stock so if we issued the materil then the Closing stick will be dr ..

Answer / keyur vora

Ms. Vaishali is Correct.

Purchase (Item/Stock) Dr.
Party Cr.

Ultimate closing stock/stock account will be debited when we
are making purchase/adding it. Debit what comes in.

Is This Answer Correct ?    0 Yes 1 No

Whats the Balnace of Closing stock so if we issued the materil then the Closing stick will be dr ..

Answer / sajjad rehman

ya i think accoridng to Income Statement

Is This Answer Correct ?    0 Yes 1 No

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