Twinkle plc manufactures lighting and lighting equipment for the home and commercial premises. The audit team is looking to test the year-end cut-off procedures for Purchases and inventory as of 31 March 202X. The auditors attended the inventory count and noted that the last Goods Received Note number was 3487. They then reviewed the listing of purchase invoices received after the year end and included in Accruals. This showed the following:

Which invoices should be included in Accruals and thus as Liabilities?
1) The invoice from Lighty Light is dated 1 April but the goods were actually received in the period as this delivery is the last one in – with GRN number 3487 – before the inventory count. Despite the invoice date being after the year end the fact the goods were delivered at the year-end means that the liability related to that financial year (202X) – not the next one (202Y). Consequently, this invoice should be included as a Liability and the goods included in inventory.
2) The invoices from Wires plc (£82,367) and Phillament (£92,393) related to deliveries made after the cut-off date as they had GRN numbers 3488 and 3489 respectively – so after the year end. Consequently, those goods were not included in inventory so the invoices should be excluded from Liabilities.

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Invoice number Supplier 73567 Queen Ltd 58392 15683 2303 82965 Wires plc Betta Bulbs Phillament Lighty Light Invoice date 30 March 30 March 31 March 31 March 1 April Goods received note number Amount £ 3485 3489 3486 3488 3487 11,345.62 82,367.00 17,395.95 92,393.00 22,583.00