Assuming that our company has cash of 40,000 in the bank, finished goods in the value of 50,000 , and the whole is financed from the enterprise’s own capital – open accounts with initial balances and record them on general and itemized accounts (to MATERIALS account):

1) a purchase of 200 lm at 10/ lm of cotton from supplier C and received (VAT invoice and MR [materials received]),

2) finished goods sold at 10,000 net (VAT invoice) receiver L,

3) GO (goods out) issued for goods sold at 8,000,

4) (internal use) designated for production 100 m cotton,

5) purchase of 300 lm at 30/lm of wool from supplier K,

6) designated for use of 200 lm of wool,

7) sale of 100 m of excess wool at 25/lm – VAT invoice issued.

Draw up a turnover and balances itemized accounts statement to materials account. Draw up the trial balance of the general accounts.