Perpetual stock recording is great to keep up with expenses.

Stock loss/gain is only detected when a physical count of stock occurs and the actual amount is compared with the balance in the stock card.

The purpose of the stock figure revealed in the physical count is to disclose stock loss or gain and to provide an amount for the current assets in the balance sheet.

Need a little review to fully understand, great lesson.

Stock loss and gain is only detected when physical count of stock occurs and actual amount is compared with the balance in the stock card

Perpetual stock recording

Accounting -> A stock control problem A stock control problem Lou Lockwood has a shop selling electronic items, including CD Walkmans. His knowledge of accounting is limited and he only keeps a "list" of his transactions involving Walkmans. All Walkmans are bought on credit and sold for cash. He provides the following information: 1 Oct 4 Walkmans on hand (cost $70 each) 6 3 Walkmans bought on credit (cost $72 each) 10 2 Walkmans sold (cash) for $100 each (1 @ $70, 1 @ $72) 13 1 Walkman withdrawn for owner's personal use ($72) 18 1 Walkman returned by a disgruntled buyer (cost $70) 20 3 Walkmans sold for $100 each (3 @ $70) 22 6 Walkmans bought on credit (cost $72 each) 24 1 Walkman used for advertising (1 @ $72) 31 2 Walkmans sold for $100 each. (2 @ $72) A physical stock take on 31 October revealed 4 Walkmans (1 @ $70, 3 @ $72) on hand. Note: The bracketed amounts will be used for identified cost.

Fruitful information.

yeah cool

got it