individual items such as meat, wine, spirits that will be sold in some form at some point through the pub/restaurant etc have been given nominals in purchases but I also have an empty current assets (stock) nominal that's empty - how do I get the information to be in current assets (stock) without moving them from purchases so as not to duplicate information - am I making this too complicated or am I missing something?
Assuming this is the businesses first year of trading, the stock nominal in current assets is for the closing stock at the end of the financial year.
Throughout the year you'll post the items you mentioned to the purchases nominal. At the end of the year, the stock will be counted and valued. You'll then need to
Dr Stock Cr Purchases.
This will make the Cost of Sales calculation correct.
Of course you can make the above more entries if e.g. the client did monthly stock takes for Management accounts
hth.
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Tony
Responses are intended as outline only. Formal advice should be sort from your Institutes Technical Department or a suitably qualified Accountant.
