Accounting - Perpetual stock recording
Perpetual stock recording
Information
Stock: 1 Nov. $2000, 30 Nov. $3400
Stock bought: $6000
Stock returns: $100
Sales: $9000
Sales returns: $200
Drawings: $50
Mark up: 100%
Perpetual ledger
Stock control
DATE
PARTICULARS
$
DATE
PARTICULARS
$
1 Nov.
Balance
2 000
30 Nov.
Drawings
50
30
Cost of sales
100
Creditors
100
Creditors
6 000
Cost of sales
4 500
Stock loss
50
Balance
3 400
8 100
8 100
Cost of goods sold
DATE
PARTICULARS
$
DATE
PARTICULARS
$
30 Nov.
Stock control
4 500
30 Nov.
Stock control
100
PROFIT AND LOSS A/C
4 400
4 500
4 500
Creditors/Bank
DATE
PARTICULARS
$
DATE
PARTICULARS
$
30 Nov.
Stock control
100
30 Nov.
Stock control
6 000
Drawings
DATE
PARTICULARS
$
DATE
PARTICULARS
$
30 Nov.
Stock control
50
Stock loss
DATE
PARTICULARS
$
DATE
PARTICULARS
$
30 Nov.
Stock control
50
30 Nov.
Profit and Loss a/c
50
Credit/Cash sales
DATE
PARTICULARS
$
DATE
PARTICULARS
$
30 Nov.
Profit and Loss a/c
9 000
30 Nov.
Debtors/Bank
9 000
Debtors/Bank
DATE
PARTICULARS
$
DATE
PARTICULARS
$
30 Nov.
Credit/Cash sales
9 000
30 Nov.
Sales returns
200
Sales returns
DATE
PARTICULARS
$
DATE
PARTICULARS
$
30 Nov.
Debtors/Bank
200
30 Nov.
Profit and Loss a/c
200
Profit and Loss account
DATE
PARTICULARS
$
DATE
PARTICULARS
$
30 Nov.
Cost of goods sold
4 400
30 Nov.
Sales
9 000
Stock loss
50
Sales returns
200
Gross profit
4 350
9 000
9 000
Profit and Loss statements
Perpetual
Profit and Loss statement for the month ending 30 November
$
$
Sales
9 000
Less sales returns
200
Net sales
8 800
Less cost of goods sold
4 400
Gross profit
4 400
Less stock loss
50
Adjusted gross profit
4 350
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. This
stock figure should NOT be deducted from 'Cost of goods sold' in the Profit
and Loss. The purpose of the stock figure revealed in the physical count is
to disclose stock loss/gain and to provide an amount for current assets in
the balance sheet.
The treatment of stock loss is not to be confused with stock revaluation
following the application of the 'lower of cost and net realisable value'
rule. The application of this rule may require a stock write down. The
stock write down is an expense and is debited in the general journal whilst
stock control, the current asset, is credited. The stock write down should
not take place until after allowing for stock loss/gain.
Many students have difficulty adequately defining 'cost' and 'net
realisable value'.
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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