stock

Lulu

Hi
Please can someone tell me which accounts I have to debit and credit to enter the journals for opening and closing stock? Also do I just enter the adjusting figure for closing stock at the end of each year, or the actual stock figure?
Thanks

James_Hudson

Hey @Lulu ! Thanks for reaching out! To enter an opening balance for a stock, you'd want to first make sure that the stock is added to your Chart of Accounts as an asset account.

From there, you would enter a journal transaction that debits the asset by the amount of the stock, and credits Owner's Equity.

When it comes to recording the gains and losses in the stock's value that happen over time, I'd recommend checking in with an accounting professional as to how frequently these entries should be made.

As far as I know, you'd go about recording them by creating an income and expense account for gains and losses in your Chart of Accounts. You'd then debit the asset account and credit the income account in the case of a gain, and debit the expense account and credit the asset in the case of a loss.