UK opening + purchased - sales v closing Stock : validation query?

[Stuart]

Hello All
I am a newbie, this my first post I am an OAP and wish you all a successful year.

I would be interested to know what I should make of the Statement of Accounts for my Allotment Club.
Apart from not balancing it shows stock entries as follows:
opening stock: 1488.66
Stock Purchased: 1528.36
Sales: 970.94
Closing Stock: 2993.27

My questions are:
Is this possible? (I wish I could replicate it in the real world).
Can I insist on a recount?
The auditor of the accounts is a close relation to both Secretary & Treasurer - Is this illegal or just inadvisable?
I hope my attempt to upload a copy has succeeded.

Thanks in advance
Stu

 

[Radek Výtisk]

Well, I see one flaw in your calculation and that is the sales. These should definitely not be included in the equation. Or, to be more precise, there should be cost of those sales included, not the sales. So the equation should go like:

Opening balance + purchases - cost of products sold = Closing balance

Not sure that I understand what the SoA is trying to say, though. Never seen something like that, it looks like some cash based recap of transactions but I am used to accrual based ones so someone with more experience with this.

Hope this helps a least a bit.

 

[Stuart]

Thanks Radek - What I was meaning was that opening stock + stock Purchased = 3017.02
then closing stock is 2993.27
it seems to say £23.75 stock value produced £970.94 sales income.
Which is surely not possible?