You will enter a cash or bank receipt to 4000, depending on how you took the money in. If you are using the invoice function to record sales, then still code to 4000.
on the last day of your financial year, count your stock and value it at cost price. Pass that breakdown to your accountant :)
-- Edited by FoxAccountancyServices on Wednesday 15th of May 2013 10:17:34 AM
I bought shampoo to resell in my grooming parlour £17.99 for 6 bottles and posted the £17.99 to Nom code 5004.
I set up an income code in the 4000 for income relating to this to keep it separate.
I decided to charge £5.50 a bottle
I have sold 3 bottles and need to know how to post please. Do i post income eg ££16.50 to 4000 code and leave the 5004 showing expense until Y/E when it would clear down to P/L so I also need to post stock into my accounts to show what I am holding eg.
Thank you, I understand the income bit coming in as it will be straight forward what I dont see is the stock bit... I have not sold all of them and so the 3 remaining still have value and should be on my balance sheet as an asset?
Also if the value I buy and sell for is different eg I make a profit does this do it automatically at the year end or is it an entry I need to make.
Hi you would need to do a closing stock journal at the end of the year for the stock you have left -i.e the 3bottles - debt balance sheet code 1000ish and credit P&L 5100 code or around that area. At the start of the following year you would do an opening stock journal basically the opposite of the closing stock, i.e debt P&L and credit BS. This would then move any stock in and out of the balance sheet. Your profit will reflect on the stock journals therefore sage will work out your profit for you. Hope all this made sense.
