Modified on: Fri, 8 Sep, 2017 at 8:44 AM
For example, say in August stock was worth £2,000; but was £5,000 at the end of September
Dr Inventory £2,000
Cr Cost of Sales £2,000
We suggest you date this on the 31st August.
On the 30th September create a journal to reverse out the August inventory balance:
Cr Inventory £2,000
Dr Cost of Sales £2,000
Finally, journal the September valuate:
Dr Inventory £5,000
Cr Cost of Sales £5,000
Both the latter would be dated 30th September.
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