Kalp Accounting Learning Articles

In Manufacturing and Trading Businesses,purchases/inwards and sales/outwards of Raw Materials/Finished Products/Trading Goods are very common. After purchase and sale of goods,when some goods are unsold at the end of last day of an Accounting period, that goods are treated/termed as Closing Stock for the Accounting period/year. You must have to ascertain the Value of Closing Stock at the end of an Accounting Year/Financial Year. You may ascertain the Closing Stock Value at the end of any day/period as per your need due to any other reason. Where Books of Account for Inventory/Stock are maintained manually/pen and paper mode for large number of Stock Items/products,it is very difficult and more time consuming to calculate the Value of Closing Stock. For large number of Stock items,digital/electronic/software mode of Stock record keeping is more comfortable/easy than manual mode. Related Books of Account/Statements for Closing Stock in a Trading Business. Stock Register/Stock Book - D

In Manufacturing and Trading Businesses,purchases/inwards and sales/outwards of Raw Materials and Finished Products/Trading Goods are very common. In this connection,after purchase and sale of goods,when some goods are unsold as on the last day of an Accounting period, that goods are treated/termed as Closing Stock for the Current Year and Opening Stock for the immediate next Accounting Period/year. Like that if you want to know the day wise Opening Stock and Closing Stock position,Closing Stock as on a date will be the Opening Stock for the Next day/date. Related Books of Account/Statements for Opening Stock in a Trading Business. Stock Register/Stock Book - Details of Opening Stock  Trial Balance - Debit Side Trading Account - Debit Side Meaning of Opening Stock with example. Opening stocks are the quantity and value of Raw Materials/Finished Products/Trading Goods available on the 1st day of an Accounting Period. Let's discuss,how we have to maintain the records of Stock and use

In a Trading Business, Due to reasons like defective goods,excess supply of goods,supply out of order etc. Debtors/Customers/Buyers want to return the goods to the Supplier. Now we are going to discuss about Debit and Credit Ledger selection on Sales Return of Trading Goods with example. When goods are returned by the Buyer/Debtor/Customer,which has already sold charging Indirect Tax like GST/VAT etc. The Debit Ledger Accounts are : Sales Return A/c GST/VAT A/c The Credit Ledger Account is : Sundry Debtors A/c In case of Cash transaction for Sales Return, Sales Return A/c shows Debit effect. GST/VAT A/c shows Debit effect. Cash A/c (in place of Name of the Buyer/Debtor/Customer) shows Credit effect. In case of Credit transaction for Sales Return, Sales Return A/c shows Debit effect. GST/VAT A/c shows Debit effect. Name of the Buyer/Debtor/Customer A/c shows Credit effect. Let's take an example for better understanding. In the Books of M/s.RS Food Products. Goods returned from M/s.

In a Business organization, Sometimes purchased goods are returned to the Supplier/Creditor due to reasons like defective goods,excess supply of goods etc. A brief explanation on Debit and Credit Ledger selection and what Accounting Entry/Journal Entry to be made in the Books of Account. In case of Cash transaction for Purchase Return, Cash A/c(in place of Name of the Supplier/Vendor/Creditor) shows Debit effect. Purchase Return A/c shows Credit effect. GST/VAT A/c shows Credit effect. In case of Credit transaction for Purchase Return, Name of the Supplier/Vendor/Creditor A/c shows Debit effect. Purchase Return A/c shows Credit effect. GST/VAT A/c shows Credit effect. Return of Goods,when Goods have already purchased in Cash with payment of indirect tax like GST/VAT etc. Let's take an example. In the Books of Mr.Sanjay Gupta,goods returned to M/s.Parbati Enterprises for ₹11000/- including GST on dated.30/04/2020 and received cash at the immediate effect. Against purchase value of