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    accteacher Posts: 5, Reputation: 1
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    #1

    Jan 16, 2008, 03:19 PM
    Adjustments to Stock
    Hi I am a teacher of level 5 accounting and recently I came across an adjustment to final accounts that I wasn't sure of.

    The adjustment reads as follows: A Christmas bonus of stock has been given to employees costing 1600. The closing stock figure is adjusted, but no other entry has been made in the accounts.

    I am assuming that the closing stock has already been adjusted by the reading of the question. Would this be right?

    So I am wondering what do I have to record. Do I reduce the purchases figure because the bonus was taken out of stock? Or do I record it as an expense in the profit and loss account and put it in as a current liability in the balance sheet.
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    accteacher Posts: 5, Reputation: 1
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    #2

    Jan 17, 2008, 09:46 AM
    Can anyone at all help with the above?
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