acct 1001 practice set (5 Viewers)

[Emily.]

ok tb is DONE

the thing i dont get is:
they give the closing stock that they counted in the stocktake, but we dont have opening stock (only for 31st of May) so how do i work out cogs??
am i able to just take the opening stock for 31st of may, only add the purchases that were made in that month and then subtract closing stock?

and also, this new amount for inventory, i changed the inventory amount in the balance sheet, is there anywhere else i have to adjust for this difference? cos i dont think the balance sheet is going to balance if i dont change something else (havent tried yet but i didnt think itd work)

anyone able to help with this?? if they wanna help me add me to msn (twistedsista001@hotmail.com) thanks, help would be MUCH appreciated!!!

 

[jpr333]

Holy Hell! Don't bump old threads you had me worried this had been handed in already!

 

[Emily.]

so can anyone at all help me?

 

[Emily.]

ok im thinking i understand where that will come back into the other side of the balance sheet: when i work out the P&L summary from the statement of financial performance, that will go under owners equity to increase retained profits, so it will all balance.....hopefully

am i on the right track??

 

[xiao1985]

to work out cogs, try using payment journal and see how much u purchased... and how much is it left and how much was there initially...

i am quite certain there should be an opening balance of inventory...

 

[Emily.]

yeah i figured it out, cos the opening inventory is gonna b the same as the inventory reported at 31st of may cos its periodic system so its not updated until 30th june. im so dumb sometimes!

 

[ToO LaZy ^*]

yo
i've got this transaction i dont understand..
june 1- paid amount owing to NAP. issued cheque no.432

i checked the 'schedule of accounts payable' and it said that the credit terms were '1/15, n/30'
do i record this under the GL in 'purchase discounts' account??

 

[ToO LaZy ^*]

omg..this is so f*ing confusing.
when we credit something in our ledgers...do we take away that credited amount from the balance?

 

[fush]

wow slow down...

Since a cash payment was made you only use the cash reciept journal
so in the cash receipt journal you dr acct. payable, cr cash and cr purchase discount


about the ledgers, when you finish all of ur posting, then you work out your closing and opening balance and you then use that for your trial balance

 

[ToO LaZy ^*]

wow slow down...

Since a cash payment was made you only use the cash reciept journal
so in the cash receipt journal you dr acct. payable, cr cash and cr purchase discount


about the ledgers, when you finish all of ur posting, then you work out your closing and opening balance and you then use that for your trial balance

cash receipts journal?..are you sure it's not cash payments journal?

nah, what i meant was...you know how there is a running balance and each time an amount is debited or credited, your balance is updated yeah?...
so would a credit DECREASE the balance or would it INCREASE the balance?

 

[011]

Oh crap my unadjusted TB won't balance.

All journals seem to have correct recording, it's really very weird. Any ideas anyone? =P

 

[fush]

yea sorry i meant cash paymeny journal

and for the running balance, you need to know the normal balance for each account

for example assets have debit normal balances so a credit decreases the balance and a debit increases it

 

[ToO LaZy ^*]

ahhh..i see.

 

[fush]

YES! i finally got my unadjusted trial banace to balance, i was gettin pissed off cause it wouldnt balance then i found a really crap error in my calculations

 

[011]

Wow, 2 hours passed and still trying to find errors.

 

[xiao1985]

just curious when's practice set due?!
i am not donig acct 1a this yr so i don't know...

 

[jpr333]

End of week 13.

 

[linzhongfan]

is there and difference between "purchase of books" and "purchase of inventory"

 

[xiao1985]

if the shops sells books then no...

 

[ressul]

Just feel very confused about the answer!

Originally posted by teehee
sales revenue - $561,030 CR
sales returns and allowances - $6,920 DR
purchases - $243,255 DR

How could the answer be like that? I mean, in the book, it already shown you that the opening balance of purchase is 566640,(see P31,500), how could the answer below that that?