Stock Losses and Gains

1. What is the role of a physical stocktake?
2. How is a stock loss / stock gain is recorded in the stock card.
3. In times of rising prices, how is a stock loss / stock gain treated in the stock card?
4. Show the General Journal entry required to record a stock loss / stock gain.
5. What is the effect of a stock loss / stock gain on assets, liabilites and owner’s equity?

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