PHYSICAL STOCK RECORDING USING QUICKBOOKS - …

1 PHYSICAL STOCK RECORDING USING . QUICKBOOKS . OPENING ACCOUNTS. If QUICKBOOKS is to be used for the PHYSICAL RECORDING of STOCK , when the datafile is opened, it should be opened as a service business, because you will not want to enable the inventory features. The accounts will need to be opened for STOCK on Hand (Other Current Asset), Cost of Goods Sold (Cost of Goods Sold), Purchases (subaccount of Cost of Goods Sold), STOCK at Beginning (subaccount of Cost of Goods Sold), STOCK at End (subaccount of Cost of Goods Sold). As Purchases, STOCK at Beginning and STOCK at End are opened as sub accounts of Cost of Goods Sold this will be the sub heading.

2 The order of the accounts should be changed so that the STOCK at Beginning appears before Purchases. ENTER OPENING STOCK . The opening STOCK in the opening trial balance is entered into the STOCK on Hand account as one of the debit balances, with the credit as part of capital. TRANSACTIONS. Sales revenue should be treated through Make Deposits (Banking) as cash sales, with the account to be credited as Sales. Purchases of STOCK can be entered through Write cheques (Banking) as cash purchases with the debit account as Purchases. If the credit RECORDING of transactions is required, items must be created so that the appropriate details appear on the invoices.

3 There will be no accompanying STOCK RECORDING . Notes prepared by Suzanne Collings 1. GENERAL JOURNAL ENTRIES FOR CLOSING STOCK . Two general journal entries are required at the end of the period. The first transfers the opening STOCK from the balance sheet account to the STOCK at Beginning account which is on the Profit and Loss. The second entry introduces the STOCK at end as the asset on the balance sheet and as a deduction from Cost of Goods Sold. PROFIT AND LOSS REPORT. BALANCE SHEET. Notes prepared by Suzanne Collings 2.