Need Help with Balance Sheet and P&L report

[Sonal Khandelwal]

Hi All,

I need help with preparing balance sheet and P&L for my small limited company. Thank you in advance . I am using accounting softwares such as Wave and ZipBooks but unsure if I am doing it right.

Details:

• I formed a limited company in Jan'19 and started trading in June'19.
• I invested some money - couple of grands to buy inventory from China and then selling it on Amazon UK
• Till date I have been able to sell three quarters of the inventory

My questions are:
- I paid supplier for full amount, but have not sold the full inventory yet. How and where do I show the payment made to supplier in these accounting softwares? Would it come under expenses? Full payment to supplier would not be classed "cost of goods sold" as I have not sold full inventory yet? Or do I only show the proportion of inventory sold in "Cost of goods sold" and not show full amount paid to supplier?

- How do I show the value of unsold inventory? These softwares are transaction based so unsure how to create transaction for unsold inventory. I can't find a way to show that I have not sold full inventory yet.

- I bought a printer for invoices and preparing shipments to amazon. Would this be expense or asset (I will depreciate over couple of years)?

Thanks,
Sonal

 

[Scalloway]

How and where do I show the payment made to supplier in these accounting softwares?

Purchases for resale or a similar heading

How do I show the value of unsold inventory

The simplest method is to do a Journal Entry at the end of the financial year.

Dr Closing Stock (Balance Sheet) with the cost of unsold stock
Cr Closing Stock (P & L)

I bought a printer for invoices and preparing shipments to amazon. Would this be expense or asset (I will deprecate over couple of years)?

Yes it is an asset, Depreciate it over its useful life.