Inventory account

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Inventory accounts are accounts that are derived from a company's balance sheet in double-entry bookkeeping ( Doppik ) . Each item in the balance sheet is assigned its own stock account.

Inventory accounts differ from income accounts in that their balances are carried forward. At the beginning of the fiscal year you have an opening balance that you take over from the balance sheet . In the course of the financial year, business transactions , i.e. financially effective transactions, are recorded and posted on the accounts , and the changed balances are transferred to the closing balance sheet in the annual financial statements . The opening balance of an account must match the value of the respective balance sheet item and the closing balance of the account in the previous year. Profit accounts , on the other hand, are opened every year with a balance of zero and closed at the end of the year via the income statement . Your final balances flow into the balance sheet item equity .

According to the two sides of the balance sheet, there are two types of inventory accounts:

Active inventory accounts
acquire the assets values, ie essentially objects of investment and working capital . They are formed from the items on the left or “ active ” side of the balance sheet. The opening balance and the receipts are posted on the debit side , issues and the balance on the credit side .
Passive inventory accounts
take up the capital , i.e. the positions on the right or “ passive ” side of the balance sheet. They show the liabilities , the equity and the provisions of the company towards the owners and lenders. The opening balance and the receipts are posted in the credit, issues in the debit.

literature

  • Michael Griga: Bookkeeping and accounting for dummies: debit or credit, that is the question , 2nd edition, Wiley-VCH Verlag 2010, ISBN 978-3527705542
  • Jörn Littkemann, Michael Holtrup, Klaus Schulte: Bookkeeping: Basics - Exercises - Exam preparation , 4th edition, Gabler 2009, ISBN 978-3834919144
  • Siegfried Schmolke, Manfred Deitermann, a. a .: Industrial accounting ICR. Financial accounting - analysis and criticism of the annual financial statements - cost and performance accounting , 38th edition, Winklers Verlag 2009, ISBN 978-3804566521
  • Günter Wöhe; Heinz Kußmaul: Fundamentals of bookkeeping and accounting technology , 7th edition, Vahlen 2010, ISBN 978-3800636839