Accounting Query

Hoping someone may be able to help - I have to reduce the value of business stock and materials I currently hold at home in order to renew our household insurance. If I were to donate a batch of older stock items to a local charity shop how would I account for this in my year end accounts (cash basis) - is it simply a case of deducting the donated stock value from the closing stock as I would with stolen/damaged stock?

Many thanks for any assistance

1 Like

I used to put it under charity donations, normally the cost price not retail. Then if your accounts are checked you can show proof that you have accounted for it.

Thank you Caroline - I thought it might be something like that - tried to check with HMRC but gave up after an hour listening to queue music