9.11 identifying any stock gains and losses
TRANSCRIPT
9.11
IDENTIFYING ANY STOCK
GAINS AND LOSSES
© Michael Allison, Trinity Grammar School. Author’s permission required for external use
Example: the Perpetual Inventory System at Rebel Sport shows that there
should be 50 footballs in stock.
9.11 IDENTIFYING ANY STOCK GAINS
AND LOSSES
Stock item: Sherrin football IN OUT BALANCE
Date Reference Qty Cost Value Qty Cost Value Qty Cost Value
1 Apr Balance 20 30 600
30 25 750
Stock item: Sherrin football IN OUT BALANCE
Date Reference Qty Cost Value Qty Cost Value Qty Cost Value
1 Apr Balance 20 30 600
30 25 750
Stock item: Sherrin football IN OUT BALANCE
Date Reference Qty Cost Value Qty Cost Value Qty Cost Value
1 Apr Balance 20 30 600
30 25 750
© Michael Allison, Trinity Grammar School. Author’s permission required for external use
It is vary rare and unlikely that there wil l actually be 50 units in stock. There
can be:
Stock losses: where less than 50 footballs are on hand (i.e. the business
actually has fewer units of stock on hand than is shown on the Stock Card)
47 footballs counted during a physical stocktake
9.11 IDENTIFYING ANY STOCK GAINS
AND LOSSES
© Michael Allison, Trinity Grammar School. Author’s permission required for external use
It is vary rare and unlikely that there wil l actually be 50 units in stock. There
can be:
Stock gains: where more than 50 footballs are on hand (i.e. when the business
actually has more stock on hand than is shown in the Stock Card)
52 footballs counted during a physical stocktake
9.11 IDENTIFYING ANY STOCK GAINS
AND LOSSES
© Michael Allison, Trinity Grammar School. Author’s permission required for external use
Stock Cards wil l only let management know how many items of stock are
supposed to be on hand
The only way to actually find out how many items of stock are on hand is to do
a physical stocktake
o In a Perpetual Inventory System , the purpose of doing a physical stocktake is
identifying discrepancies between:
Stock Card
How many should
be on hand?
Physical stocktake
How much is
actually on hand?
Vs.
9.11 IDENTIFYING ANY STOCK GAINS
AND LOSSES
© Michael Allison, Trinity Grammar School. Author’s permission required for external use
Doing a physical stocktake means a business can now identify stock
losses and stock gains
There are 3 possible outcomes from a physical stocktake:
PerfectPhysical stocktake
amount= =Stock Card
amount
Stock LossPhysical stocktake
amount= <Stock Card
amount
Stock GainPhysical stocktake
amount= >Stock Card
amount
9.11 IDENTIFYING ANY STOCK GAINS
AND LOSSES
© Michael Allison, Trinity Grammar School. Author’s permission required for external use
Example: the Stock Card at Rebel Sport shows 50 footballs on hand…
PerfectPhysical stocktake
50 units= =Stock Card
50 units
Stock LossPhysical stocktake
47 units= <Stock Card
50 units
Stock GainPhysical stocktake
52 units= >Stock Card
50 units
9.11 IDENTIFYING ANY STOCK GAINS
AND LOSSES
© Michael Allison, Trinity Grammar School. Author’s permission required for external use
TASK
In-class Homework
SQ17 X