I keep the accounting of a farm that is dedicated to the fattening of chickens, that is to say, the income that obtains son by the services of fattening, no purchase nor sells the chickens. I would like to know how I should consider the year-end stocks and that you can book entry.
First you will have to indicate to what type of stock you are referring since the chickens are not stock, stock can be the grain for fattening for example. Thus, inventories are calculated by the difference between the initial inventories of the period and the existing inventories at the end of the period, and the value of the inventories must be found by the accounting means (to choose) LIFO or FILO, which allows Allocate an average value to inventories, so the basis of the calculation is the inventory at the end of the period.
Changes in inventories will be reflected in the accounts of group 3 and their changes in value will be reflected either in the subgroup 61 or subgroup 71 accounts (stock changes in both cases).