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Increase Stock and P&L

Increase Stock and P&L - bookkeeping

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Hi, Please could someone explain this transaction, im struggling to get my head round it.

 At year end our accountants passed me a journal to increase  DR -Stock value and increase CR - P&L Account. 

thanks

 

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11th Jun 2019 17:16

Here's an idea. Speak to your accountants.

EDIT: To be fair, if you are "struggling " with that, you probably shouldn't be involved with the accounting. Speak to your manager about it.

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By WAA
to Accountant A
11th Jun 2019 19:48

I haven't explained myself properly, this is a y/e adjustment against my accounts of which was at a loss, far as i am aware there is no increase or revaluation of stock, i don't doubt the accountant he is very good however are these adjusts ethical

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to WAA
11th Jun 2019 19:53

WAA wrote:

i don't doubt the accountant he is very good however are these adjusts ethical

If he is very good then surely he is also ethical?

If you don't know why the adjustment was put through, it's pretty difficult to form a meaningful opinion as to whether it is ethical - or, indeed, correct.

PM me your accountant's number and I'll have a word with him.

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By WAA
to Accountant A
11th Jun 2019 19:48

I haven't explained myself properly, this is a y/e adjustment against my accounts of which was at a loss, far as i am aware there is no increase or revaluation of stock, i don't doubt the accountant he is very good however are these adjusts ethical

Thanks (0)
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By jcace
11th Jun 2019 18:59

You increase the value of stock that is shown on the balance sheet by debiting the relevant account.
You the credit the same amount to the account that will show on your P&L, eg closing stock that is within cost of sales.

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By WAA
11th Jun 2019 19:47

I haven't explained myself properly, this is a y/e adjustment against my accounts of which was at a loss, far as i am aware there is no increase or revaluation of stock, i don't doubt the accountant he is very good however are these adjusts ethical

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By Matrix
to WAA
11th Jun 2019 20:53

Do you hold stock? If so then I doubt the figures would be exactly the same as last year so he must have based the entry on something, usually a stock take.

Or if you don’t hold stock then could it be work in progress?

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By jcace
12th Jun 2019 10:19

If you're simply asking why the stock value is being increased, that's a question only your accountant can answer.

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