Partnerships
Merioneth
Registered Posts: 21 New contributor 🐸
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
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
0
Comments
-
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!0 -
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....0 -
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………………………………………………………3500
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