Categorise Stock for Resale

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Categorise Stock for Resale – Free Online Small Business Accounting Software Questions & Answers

Hi Guys
I don’t seem to be able to get my stock to show in both my P&L and Balance sheet. I can
only get it in one or the other depending on whether I categorise it as a Current Asset (p&L) or a Direct Cost(balance sheet)
I went into the Chart of Accounts and changed the cagegory there. There must be some other category I should be using?
Cheers
Shane

  1. Peter Connor June 22, 2015
    Hi Shane,

    I'll get Johnny to answer this for you.

    Cheers

    Pete

1 answer

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john_bullet ⋅ Staff June 22, 2015
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Hi Shane,
Stock for resale / Inventory is shown on the Balance Sheet and not the P&L because the stock hasn’t been sold yet (so not included on the P&L), but could be sold (has a value) which is why it’s on the Balance Sheet.
When you sell the stock, you no longer have it (so it doesn’t appear on the balance sheet anymore) but it appears on the P&L.  Stock doesn’t appear on both the B/S and P&L at the same time.
You can use a manual journal entry to record the sale of you stock so that it appears on the P&L.
Regards,
John.

#answer-1667
  1. shanedl June 23, 2015
    Makes sense. Thanks John.

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