How to account for dead stock

If you resell stock, you account for it in a special way (see below). However, sometimes that stock can go missing, or it can break, or in the case we just took over the telephone (a petshop owner): it can die:(

First, see this thread for how to account for goods you buy and resell:

For stock that is stolen or damaged:

And finally on to the petshop owner’s sad problem: Open a new account in Equity > Profit & Loss > Sales > COGS called Dead Stock (or maybe something a little less terminal sounding!). Make a Transfer Transaction From Stock Bought (in assets) To Dead Stock. The type is ‘Inventory Adjustment Account’.