Meanings of Inventory Accounts Part II

Meanings of Inventory Accounts Part II

What do you have to consider with inventory accounts without an opening balance?

In your balance sheet you will find the closing stocks for the end of the year . This also applies to the inventory accounts . This ending stocks provide the same for the new fiscal year beginning stocks represent. So you can also book individual stock accounts your opening balance, this balance is through the opening book in mirror-image form in the opening balance sheet presented. So that you book according to the principle of debit to credit the opening balance of your active balance must be on the credit side of the opening balance. It looks exactly the other way around with your passive inventory accounts. Here your opening balance is on the credit side and in the opening balance on the debit side. If there are no opening balances, you have to transfer a NULL here.

Calculation example for the use of the booking rate

Let us take the passive stock account “Payables from services and deliveries” . In the balance sheet, the stock from this passive stock account is managed on the credit side. The amount is 0 euros. That means it has to be on the debit side of your opening balance. According to the principle of debit to credit, your booking rate is therefore as follows.

What are success accounts?

It is undisputed that proper bookkeeping is a complex issue for many entrepreneurs like you. In order to keep the correct overview, it is therefore important for you that you now already know the meaning of the inventory accounts. But you are confronted with other terms. One of these terms is success accounts . But aren’t the assets and capital of a company also related to success? But assets and capital are shown on the inventory accounts. So what are the success accounts all about? Under no circumstances should you confuse inventory accounts and profit accounts.

According to, the basis for your later profit and loss account is shown on the profit accounts . However, there are no stocks of assets and debts shown, but all income and expenses . If there is an expense or income in your company , the value must be posted to the corresponding success account. Here, too, at the end of a financial year you have a list of all changes in value that have occurred during this period.

As with the stock accounts, a distinction is made between two different types of profit accounts. These are the income accounts and the expense accounts .

What are income accounts?

You record all changes in value that are positive on the income accounts . Examples of income accounts.

  • Interest income
  • Sales
  • Income from commissions
  • extraordinary income (e.g. fixed assets sold)

What are expense accounts?

Your income is offset by the expenses and you have to post these to the expense accounts . Examples of expense accounts.

  • Wages and salaries
  • Rental payments
  • Interest expenses (for example for current loans)
  • Extraordinary expenses
  • Material consumption costs

All profit accounts are offset against each other at the end of a fiscal year . You transfer the result of this to your profit and loss account . If you have more income than expenses, then your company has made a profit . If the result is reversed and the income is offset by more expenses, you have suffered a loss .


With an income statement template you can easily fill in your income and expenses. This saves you time and allows you to focus on your core business.

Frequently asked questions about inventory accounts

Which accounts are inventory accounts?

As stock accounts accounts are called, which emerge from a balance sheet . They relate to the stocks on a balance sheet. A distinction is made in the inventory accounts between the active accounts and the passive accounts.

Is equity an inventory account?

Equity is shown on the balance sheet. The equity account is therefore also an inventory account.

When should and when credit book?

The terms debit and credit are commercial terms from accounting. Desired always stands for a minus balance and must be posted as an outflow on an inventory account. Credit represents a plus balance and must be posted as a receipt on an inventory account.

What are active and passive accounts?

Active accounts and passive accounts are inventory accounts . The asset items on the balance sheet are always shown on an asset account. On the other hand, the liability positions can be seen on the liability account.


The inventory accounts are accounts that are derived from the balance sheet items in double-entry bookkeeping . Each item gets its own stock account. A distinction is made in the inventory accounts between the active and passive accounts . The success account is the opposite of an inventory account. The balances are not continued with a success account.

Inventory Account 2