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closing stock

This topic has 1 reply, 2 voices, and was last updated 11 years ago by John Moffat.

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February 16, 2014 at 11:53 am #158961
Shahil
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At 31 dec year ended a solo trader closing stock is $100. During the same day he orders $100 worth of stock of which 50% has already been confirm to sell the next day.
How much should the closing stock be in the financial report?
February 16, 2014 at 2:49 pm #158982
John Moffat
Keymaster
- Topics: 57
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$100.
The fact that he has ordered inventory is not relevant – he does not own it.
The fact that he has confirmed a sale the next day is irrelevant – either he had sold it in this financial period or he has not.
(And we no longer call it stock – it is inventory)
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