Closing and opening stock

M

missthrifty

Registered User
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Hello.
I am doing self assessment for the first time as we had to depart from our accountant due to financial restraints. He did the 2010/2011 set of 22 months accounts for a new business and only entered closing stock of Euro 7K on the financial breakdown. (Would the opening stock be included under purchases which came from a start up loan and ongoing sales throughout the period?).

For 2012 accounts, do I need to state the opening stock (ie: Euro 7K) which would have been the same as 2010/2011 closing stock. This year's closing stock is also about Euro 7k.

Thanks for any advice
 
From what I gather the following years opening stock is last years closing stock and then you take into account cost of sales etc and the balance is closing stock figure , if that figure of approx. 7K is the figure after cost of sales well then it is your closing stock
 
You really do need an accountant for this. Or else do a course in basic bookkeeping and accounting. You won't be able to learn it through a discussion forum.

But here is a simple explanation.

My sales for the year are €1,000.

My purchases were €800, so I need to figure out what was the cost of those sales.

|Opening stock|€300
+|purchases|€800
- |closing stock |€400
=|cost of sales|€700

So I made a gross profit of €300 on the €1,000 sales.
 
the previous set of accounts had no opening stock as it was a new business - so all the stock was via purchases. The current year accounts will show the 7k opening stock to add to purchases and 7k closing stock to be deducted to show the cost of sales figure.
 
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