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DETERMINATION OF PROFIT ADJUSTMENT OF STOCK

The result of an exercise is determined by the difference between revenues and expenditures that occurred during it.

Example: A company submits the following amounts of income and expenditure at the end of the year:

Sausage Stuffers Austin Tx

consists in giving low opening stocks and then discharge the final through a series of accounting entries.

The difference between the two balances will be taken to income as income or expense depending on the sign of it.

Accounts:

61. CHANGES IN INVENTORIES
610. Changes in inventories of goods
611. Changes in inventories of raw materials
612. Changes in inventories of other supplies

Example: A company starts the year with a stock 02 initial
€ 93,757.89. The chips store,
carried by the weighted average price method, throw
end inventory balance amounting to € 78,131.57
.