 |
|
|
No, CAPITAL is a double-entry accounting system and one-sided journal entries are not normally possible. However, you can adjust your stock figure using double-entries if reports. The procedure is to enter a general journal that will adjust your opening/closing stock accounts and inventory balance. The general journal consists of the following:
For example, if the value of your inventory was last month worth $1,000,000 and you want to change this to $800,000 you would enter it as follows:
The difference of $200,000.00 goes to "cost of sales" which is a calculation. This will not upset any other key accounts on your trial balance, but it will effect your retained earnings on your balance sheet. To enter this journal: 1. Create a general journal for the required period. 2. Enter the accounts and amounts as shown above. 3. Post the general journal. |
I Need
To Revalue My Stock. Can I Do A One-sided Journal Entry?