Question re nominal codes for purchases and resale
We buy a product, let’s say milk, the invoice is posted to the purchases n/c 5000
We resale that product, eg milk, to another supplier at cost.
Does the sales invoice go to the sale nominal 4000?
How is stock and profit accounted for by posting to two different nominal accounts?
eg. using our milk as an ingredient to produce a product to sell at profit v reselling the milk at cost?
