Manoj Punjabi (Accountant) (283 Points)
22 November 2024Hello everyone,
While entering opening stock in new software during the year (changing software) the stock added also appear in balance sheet as -ve figure.
How to enter the opening stock in new software, is my question? So that it does not appear anywhere in balance sheet.
Rama chary Rachakonda
(Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294)
(5686 Points)
Replied 22 November 2024
1. Create a new account: "Opening Stock" (or similar name) in the Chart of Accounts.
2. Debit the "Opening Stock" account with the value of the opening stock.
3. Credit the "Retained Earnings" or "Reserves" account with the same amount.
Additionally, consider the following: -
Ensure the new software allows for the creation of a dedicated "Opening Stock" account. -
Verify that the journal entry is properly reflected in the financial statements.
6 days Certification Course on GST Practical Return Filing Process
CAclubindia
