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XinCHEN(Newbie)Newbie
20 July 2023

This is a small business using cash basis here. If I purchase inventory, can I go ' Dr COGS, Cr Cash at bank', instead of bill 'Dr Inventory Cr Cash at bank', invoice 'Dr Cash at bank, Cr Revenue, Dr COGS Cr Inventory'? so that I can claim all deductions. can I do this?

I never do stocktaking before, I don't have the stock system at all, do I still need to value my stock at year end?

Thank you guys!

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528 views
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Bruce4Tax(Taxicorn)Taxicorn
20 July 2023

Dr Purchases

Cr bank


do I still need to value my stock at year end?


Yes - do a stocktake at 30 June.


COGS = [opening stock] + Purchases less [closing stock]



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