Grateful for help with the following. Where do I post closing stock at year end to. Do I post the difference between the opening stock and closing stock or do I post full amount of closing stock?
Drawings - Last year I posted them to 3020 but find when I done year end and moved on to new year the amounts from the previous year are carried forward in full - thus showing the total amount of drawings in the next years trial balance. Should this not be cleared with the old year and nil balance brought forward. What am I doing wrong?
DR balance sheet stock (usually 1001)
CR Profit and loss stock (usually 5201)
Drawings.. balance sheet codes do not clear down when you run the year end. I would usually have a "capital account b/fwd" code set up and I would journal the in-year balances into this, on the first day of the new year, to clear the analysis codes back down to NIL.
