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Tomasz Szlachta

  • #1
    Hi,

    One of my clients runs a small grocery shop. I will be preparing his final accounts in May. The only one problem I have got is about the valuation of closing stock. He is not happy to do a stocktaking because it's time consuming (he won't do that). I don't know how to calculate a cost of sale without having closing stock. I said to him it is needed to calculate accurate profit for the year, but it hasn't changed his attitude.

    Any help will be appreciated.
     
    T

    Tomasz Szlachta

  • #3
    Yes, it is but how can I do it?

    there is something around 100 different goods bought during the year. Some of them are sitting on the shelves quite long, some of them are sold pretty quickly. if I want to use FIFO how to do it if he doesn't have any stock movement control facility in place. all the sale is the cash sale through cash register.
    it could be last in first out (pretty sure)
     
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    Scalloway

    Scalloway

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    Jun 6, 2010
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  • #4
    What is the value range of the stock? If there are a few high value items I would try to count and value them. How is the bulk of the stock stored? Is it in boxes? Count the boxes. You will have purchase invoices so I would use the most recent one to estimate a few box values and extrapolate from there.

    This is one of the joys of accountancy, part science and part art.
     
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