Opening Stock and Closing Stock Concept
How to bring Opening Stock and Closing Stock in Books?
If Book Keeping maintain in Finalisation Software (Xero), Then no need to bother about Opening stock and Closing Stock
If Book Keeping not maintain in Finalisation Software (Xero), The how to bring Opening Stock and Closing Stocks in Books of Account
After Bringing Net Movements into the Books
Take Trial Balance of PY you will see Stock in Hand in Asset side is nothing but (Closing Stock of PY), So Last Year Closing stock going to be current year Opening Stock.
For Closing Stock of the Current year, they will Give a Report From their Book Keeping Software (MYOB, Quick Book), based on that you need to Pass Entry in the Books.
Example:
Stock in Hand for FY 2021: 20000
Stock in Hand for FY 2022: 45000
Journal Entry for FY 2022
-
Opening Stock Dr 20000
To Stock on Hand 20000
-
Stock in Hand Dr 45000
To Closing Stock 45000
