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    ashleigh2894's Avatar
    ashleigh2894 Posts: 1, Reputation: 1
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    #1

    Jul 1, 2014, 03:39 PM
    How does purchases affect closing stock on the balance sheet
    I have 15000 in purchases and 50000 in sales and 3000 closing stock I have to put these transactions on a balance sheet how do I do it?
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #2

    Jul 12, 2014, 05:27 PM
    sales is a component in debtors purchases is a component of creditors and inventory is inventory. how were these recorded in the first place, are you saying thses are balance day adjustments. if so the inventory reduces the cost of sales in the p&l and is shown in the balance sheet the sales increases revenue in the p&l and debtors in the balance sheet and the purchases increases the cost of sales in the p&l and creditors in the balance sheet
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