My supplier has given us free trading stock as an incentive to sell his products. How do I capture this? I know that I debit stock but what account should I credit? Would I need to create an "other income" account for this?
i am confused by the stocktake process. for example the trading account has purchases and opening stock valued at cost which makes sense but doesnt a stocktake involve counting all the stock on a shop floor(which will be valued at selling price therefore including differing VAT rates and different profit margins)?? see example below.
in the example above the closing stock figure of 2000 is the clunted stock figure including VAT and profit margin which to me is incorrect. the pink figure of 1223 is the actual cost of the stock on the shop floor.
how does stocktaking get me the correct gross profit,of 423 above if closing stock figure is actually 1223?
I have just completed a bookkeeping course and started working with a bookkeeper on a voluntary basis. He has given me some accounts to prepare. One of the things i have to do is determine the stock value at the end of month. How do I do that;i am completely confused?