Journal Entry for Stock Sales
In this article we would
explain the sales of stock. There are possible journal entries under perpetual
inventory system and periodic inventory system.
Journal Entry for Stock Sales in Periodic Method
In periodic inventory
system, there is no journal entry in the
stock account. Thus there is no real time update in stock under this system,
rather stock shall be counted and updated at the end of the period.
Journal Entry for Stock Sales in Perpetual Method
In perpetual inventory system,
in case of sales, the following journal entry is recorded. The stock account is
credit and cost of sales is debit. This means decrease in stock is charged to
cost of sales. On one had stock is decrease and on other hand expense is
charged to cost of sales account.
|
Date
|
Particular
|
Ledger Folio
|
Dr.
|
Cr.
|
|
Cost
of Sales
|
|
xxx
|
|
|
|
|
Stock
|
|
|
xxx
|
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