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Post Info TOPIC: Accounting for Stock


Newbie

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Posts: 1
Date:
Accounting for Stock


I run a micro business that previously supplied only services.  I've recently started to sell self-published books and I'm having difficulty understanding how to manage the stock of books in Sage 50 (UK Version 24).  I'd like to explain what I've done so far:

  1. I had 100 copies of my book printed and set up a supplier account for the printers.  When they invoiced me I entered the invoice for £1,900 on their account, which has the default code 5001 (Materials & Printing), and later paid this off from 1200.
  2. I entered 100 books on Opening Stock on 5200 and used the wizard to give a current item value and do a stock take at YE.

I now have the following on the TB:

1001 (Stock) - CR £1,349
4002 (Book Sales) - CR £1055
5001 (Printing) - CR £1,1900
5200 (Opening Stock) - DR £1,900
5201 (Closing Stock) - CR £551.00

On the BS I now have a Stock shown as (£1,900).  Clearly I've done something wrong but because my understanding of the relationship between stock and cost of sales is shaky I can't figure out what it is.  There seems to be very little about this on the web and nothing in my 'Sage 50 Accounts for Dummies'!  Please give me a nice Christmas present by pointing me in the right direction.

 

 

 

 



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Lawrence


Master Book-keeper

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Posts: 3633
Date:

Hi Lawrence

Hope you had a nice Christmas.

This is a forum for accountancy professionals but I can give you a couple of pointers.  Assuming this is your first year of trade, you won't have an opening stock figure, only a closing one. 1001 should read £551.00

 



__________________

John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.



Newbie

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Posts: 1
Date:

Hi Leger

Many thanks for your reply which is truly in the spirit of Christmas and which explains two things: (a) Why I got some rather frosty feedback this morning accusing me of being a 'freeloader' and (b) where I made a mistake in Sage 50.

Season's Greetings to you!

Lawrence

 



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AC


Member

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Posts: 19
Date:

Leger wrote:

closing one. 1001 should read £551.00

 


 Overstating it.



__________________

AC



Master Book-keeper

Status: Offline
Posts: 3633
Date:

AC wrote:
Leger wrote:

closing one. 1001 should read £551.00

 


 Overstating it.


 Please explain?



__________________

John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.

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