Basic accounting problem

[xoggoth]

Thanks very much Phil. The assets q was just me being stupid, only the lasy year's stock question I am confused about now and have asked a Q on accountingweb (have answered enough excel/IT qs there in past) . I will get back to you if necessary once checked through and made sure figures are right.

[PhilAtBlevinsFranks]

Hi,
I had a quick look at your post on accountingweb and have seen the answer someone gave you there which showed the way the P&L should be laid out.

Its the movement in stock that is added to the purchases.

So if on the first day of your financial year you had £1000 in stock, and during the year you purchased £2000 of stock, and at the next year end you have £1500 of stock, then you have actually used £1500 of purchases to "make" your sales. This appears as:-

Purchases +Opening Stock - Less Stock = Cost of Goods for resale
£2000+£1000-£1500=£1500

Hopefully this clears it up !