I have purchased some stock for my business, in my accounts do I credit the DLA and add the stock to my stock list?
Do I need to enter the cost of stock on the balance sheet as a liablity as money owed to me?
Replies (9)
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The answer to your first query is yes.
The credit to the DLA will show up as a liability of the company on the balance sheet. Any unsold stock will appear as a current asset.
Yes, you credit the DLA and Dr Purchases.
There is no further entries to be made. By Crediting the DLA you are already creating a liability from the company to yourself.
For future reference though you will most likely get more constructive replies in the future from the following website:
http://www.ukbusinessforums.co.uk/
There is people on that website who are happy to give out free advise to business owners, if you look at some other threads on accounting web you will find this site less accommodating to "non-accountants". Be prepared for the torrent of replies saying "pay for an accountant" or "this is a site for professionals only"
Edit: Seems I was too slow in replying - pipped to the post by Scalloway! - also edited for johns correction
You don't debit stock you debit purchases.
If using ERP, or other software, it may debit stock/inventory in the balance sheet directly depending on the systems process.
For future reference though you will most likely get more constructive replies in the future from the following website:
http://www.ukbusinessforums.co.uk/
There is people on that website who are happy to give out free advise to business owners, if you look at some other threads on accounting web you will find this site less accommodating to "non-accountants". Be prepared for the torrent of replies saying "pay for an accountant" or "this is a site for professionals only"
Never looked on UKBF before. Just had a quick look and someone illustrated their view on an (obviously) UK tax issue by posting a link to some US tax site. Genuinely frightening! Not surprised HMRC have concerns about some businesses' compliance.
just out of curiosity are you trading as a limited company - your other post on stock purchase with no receipts leads me to wonder....