Meaning of Goods
Whichever thing is bought in business or made
With the intention that we will sell it
And by buying in less and making in less and selling in a
little expensive
That thing is called goods
For example, in the beginning of a t-shirt
So if they buy a t-shirt, but what is the intention?
Will buy and sell
Will buy in 10 and sell in 12 and earn 2 rupees
T-shirt is a good for them
For example, there is a spice shop
They buy spices from outside and bring 100 rupees a kilo
Will sell it for 120 rupees a kilo
Spices are good for them
If there is such a thing, there is such an item
Which you are making yourself and selling
Even then that thing is good
It is also good to make and sell yourself
And the thing that is bought and sold is also good
What is the purpose while buying and making?
Just see this
What is the purpose while buying and making?
It is important to see this
If there is a purpose to sell while buying and making, then
that thing will be good
If there is no purpose to sell while making and buying
Then that thing will not be good
For example, we buy machinery
Not to use or sell
There is no goods
We buy a camera
Not to use or sell
We are buying a laptop
There are goods to use and sell
But those who buy the camera and laptop
To sell
Camera is a laptop goods for them
What will be the thing that will be good
What is not good
Business to business
This thing differs
It differs from business to business
Then comes
Stock which we also call as Inventory
Goods purchased to sell
Purchased goods, sold goods
Purchased goods till it is kept in your warehouse and not
sold, we call it as stock
Means goods is called as stock
Purchased goods till we don't sell it, we keep it in our
warehouse till then we call it as stock or inventory
Stock or inventory is a tangible asset that is held by the
business for the purpose of sale in the normal course of
business or for the purpose of using it in production of
goods meant for sale
Till the time the purchased goods are sold till then the
goods are sold
There is one more line written here
If we have purchased raw material and we haven't used the
chemical yet to make soap
We make soap from chemical
We haven't used it yet
Till then we call it as stock
Means stock can be of raw material which we are going to
use to make finished goods and can be of finished goods
Even we can have stock of work in progress
Like I give you an example
Let's continue this example
We buy chemical
We make soap from chemical
And then we cut that soap in design pack it and sell it
So the chemical we have purchased is of raw material
The amount of raw material we haven't used yet we have
stored it in the warehouse that much raw material we call
stock
After that we convert that chemical into soap
Now it has become soap
But it hasn't come in shape yet
So it will be called stock of work in progress
It is on progress
It is going to be finished
And as soon as you cut it and pack it and bring it in
saleable condition
Then it will become stock of finished goods
And as soon as it is sold, it will be called as sale
As soon as it is sold, it will be called as sale
It includes goods unsold on a particular date
It is the same thing
Non-sold goods we call it as stock
It may be opening or closing stock
On the first day of the year, the remaining stock is in the
warehouse
Whether it is of raw material, WIP or finished goods
We call it as opening stock
We, the remaining thing of the last day of the year that we
have, is called closing stock 31st March
The goods unsold in the beginning of the accounting period
is called opening stock
Whereas the goods unsold at the end of the accountoing
period is called closing stock
Ok? Ok Sir
The goods that weren't sold in the beginning on the first
day of the year, that is an opening stock
Goods that weren't sold on the last day of the year
The one remaining on the last day we have that as closings
stock
Call it as stock or as inventory
In many places, you will find the opening of inventory
You will get to see closing inventory word in many places
So don't get confused by looking at inventory
What is the new term called inventory
Inventory means stock
Call it opening stock or opening inventory
Call it closing stock or closing inventory
It doesn't make any difference
Thank you