Transferring unsold purchases to inventory at year end
Transaction
A shop opened this year, so it had no goods in stock at the start of the year. Its purchases of goods for the year were {purchases}. At year end {units} units remain unsold; each cost {unitCost}. Record the year-end inventory entry.
No equivalent in this convention
In the US convention purchases are recorded directly in Inventory (perpetual), so nothing is transferred at year end; under a periodic system the Purchases balance is closed to Cost of Goods Sold or Income Summary, not to Inventory. The US periodic year-end entry has its own item.
Choose another convention above to practice this entry.