Does the Opening Stock go in the balance sheet until the year end adjustments or straight to the P&L?

Question:

I am dealing with the accounts of a new business I have purchased.

Answer:
It goes in the trading part in the trading and profit and loss account at the end of your first year trading.

Heres a simple trading account, you can also include carriage and returns:

Sales________________10000
Less cost of sales
Opening Stock 1000
add purchases 3000
less closing stock 2000
_____________________2000

Gross Profit_________8000

Also, as it is a new business, you can draw up a balance sheet of your opening liabilities and assets, eg stock, property etc. You would use your opening stock for this. Also you could draw up a projected profit and loss account, based on realistic figures to check if you need to keep your costs down.

Hope this helps x

I imagine it would go on the balance sheet, but I suggest you get an accountant.

Does the Opening Stock go in the balance sheet until the year end adjustments or straight to the P&L?

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