What is the entry for stores consumed in company final account??
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The valuation of closing stock and recording of the value of closing stock in the books are two different aspects. After ascertaining the value of the closing stock, it is to be brought into the books of accounts.
The basic purpose of accounting is derivation of information and the more information we need the more the accounting heads we need to maintain.
For each additional piece of information that we intend to derive from the books of accounts, we create and use an additional ledger account.
Thus, to derive the information relating to Closing Stock we maintain a real account by name Closing Stock. Closing Stock a/c gives the information relating to the value of the stock (as an asset) unsold at the end of the accounting period.
The basic purpose of accounting is derivation of information and the more information we need the more the accounting heads we need to maintain.
For each additional piece of information that we intend to derive from the books of accounts, we create and use an additional ledger account.
Thus, to derive the information relating to Closing Stock we maintain a real account by name Closing Stock. Closing Stock a/c gives the information relating to the value of the stock (as an asset) unsold at the end of the accounting period.
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