Value of unsold stock

Value of unsold stock

Didn't find your answer?

We have a cleaning business for which we obviously need a supply of chemicals and solutions etc

Our accountant always asks for a value at cost price for whats remaining.

The question is- how does the figure totalled here affect our accounts? We are a self employed partnership my wife and I.
Does it affect net profit, does it affect income tax?

Many thanks.
Nathan

Replies (3)

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By duncanedwards
04th Apr 2015 11:31

Why not ask the accountant why he/she wants the information?

If they haven't explained it; they should.

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By petersaxton
04th Apr 2015 12:59

And the answer is yes

I agree that these are questions you should put to your accountant, but, ignoring any balance at the previous year end, if you spent £10,000 on cleaning materials and had £1,000 worth left at the end of the year then your cleaning materials consumed in the year was only £9,000.

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By johngroganjga
05th Apr 2015 07:51

Arithmetic
I agree that if you don't know why your accountants need information you should ask them not a public forum.

But the arithmetical connection between your stock and your profit, is that the higher your stock is the higher is your profit in the preceding period and the lower it is in the following period. The connection with your income tax is of course that your profit is what you pay tax on.

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