Partnerships

MerionethMerioneth Settling In NicelyPosts: 21Registered
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

Comments

  • MerionethMerioneth Settling In Nicely Posts: 21Registered
    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!
  • hanapospishanapospis Well-Known Posts: 111Registered
    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....
  • vishavisha Well-Known Posts: 218Registered
    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
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