Journals

I have been given a question and I am having a senior moment and have gone toally blank and need help:
"no entries have yet been made for closing inventory as at 31st March 20X7. It has been valued at sales prices of £16875. The sale price of goods is always 35% higher than the cost of the goods."

What is the journal entries I need to do?

Comments

  • kelsmickkelsmick AberdeenPosts: 89Registered
    So you would need to work out the value of inventory so if its been marked up 35% of purchase prices it would be £16,875 / 135 * 100 = £12,500 then you would do you journal entries to for the p&l & balance sheet.
    www.essencebookkeeping.co.uk
    7xdaverakeshsuwal
  • JoshJ1992JoshJ1992 Posts: 75Registered
    Journal entries would be
    Debit - statement of financial position £12,500
    Credit - statement of profit and loss £12,500

    Hope that helps.
  • rakeshsuwalrakeshsuwal LondonPosts: 79Registered
    edited January 2016
    Dr Closing inventories (spf) 12500
    Cr Closing inventories (spl) 12500
  • 7xdave7xdave Posts: 2Registered
    Thanks all
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