Could you explain how I can arrive at an opening inventory figure when preparing a statement of affairs for a company especially when the company has been in operations for five years and want to prepare accounts for the last two years? Thanks for your assistance
Andrew Steele
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work back from the closing stock
It all depends on what they are trading in?
If there are a lot of different items being sold at different mark ups it will be difficult.
However, if they are trading in the one/few items and the mark up is known, you should be able to work back using the closing stock, purchases, and sales figures.