Hello, we are performing a stock count for closing stock at end of year. We have found stock which is obsolete and want to take these off our stock report, how do i account for this? Would appreciate any advice
Maybe I should have expanded my answer a little more. I have no idea what you are calling your accounts, but I tend to keep it simple and use an account called Stock Bought (Current Assets) to analyse my stock purchased.
I would then open a new expense account for the obsolete stock.
Finally, credit Stock Bought and Debit Obsolete Stock.
