Partnerships

Merioneth

Hi

Well I imagine we are all busy trying to get the portfolios done.

But can anyone help me with a piece of coursework I've attached?

I am still stumped on question 4). I am at the moment debiting Purchases and crediting stock to remove it from the accounts?

I don't know if that's right and I can't go any further until I know!!

Help

Merioneth

Ok now am really confused.

A work colleague recommended debiting purchases and crediting sales

This is because we will be receiving compensation so we need to move this amount and record it as a debtor!

????

Help!

hanapospis

Hi,

I am not sure if I can give you the right answer as I have just started my advanced course via distance learning two months ago.

But I would credit purchases (as we have never received the goods) and debit non trade debtors account as we are expecting a compensation for the currier....

but not 100% sure....

visha

Point 4

Replicate the transaction

Paid from bank…………………….Bank…………………........….....Cr 350
Paid purchase invoice…………….Purchase…...Dr 350

You do not have a stock account in your main ledger. Your purchase a/c is your stock account.

Your opening stock a/c is last year’s unsold purchases and there should be no movement in that account at all except – at the end of year it will get transferred to P&L a/c

We have not received the goods therefore we have not purchased the goods:

REQUIRED JOURNAL

Purchases……………………….Credit…………………………...350
Carriers PLC (now debtor) …….Debit……………..350


When we receive payment from Carriers PLC in future

understanding

Bank……………………………..Debit………………350
Carriers PLC………………………………………………………350