RETAIL SHOPKEEPER ACCOUNTING

This query is : Open

Chintan Kareliya (Querist)
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31 October 2020 (1) IS IT NECCESARY TO KEEP STOCKWISE ACCOUNTING FOR RETAIL SHOPKEEPER HAVING VARIOUS SMALL CATEGORY STOCK???
(2) IS ACCOUNTING WITHOUT CREATING STOCK POSSIBLE IN THIS KIND OF BUSINESS ????
(3) HOW CAN I VALUE CLOSING STOCK AT THE YEAR END IN WITHOUT STOCK ACCOUTING???

CA Ankith Jain

CA Ankith Jain (Expert)
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01 November 2020 1. No, it is not necessary when it is practically not possible to keep stockwise. 2. Yes, accounting is possible accouting without creating stock. 3. You can value closing stock as a balancing figure item in the trading account. Like assuming gross profit is 30% in your kind of business, you can calculate gross profit of 30% on total sales and balancing figure is closing stock.