Exercise 3. Inventory accounting methods. Periodic inventory method. Wool Ltd. beginning balances of balance sheet accounts on 01.10 are in EUR: Other fixed assets - 15 000 Accumulated depreciation of fixed assets - 5 000 Purchasers and commissioning party debts- 30 000 Inventories balances (on the 01.01.) open separately account for each kind of inventory Fabrics -11 000 Unfinished orders -1000 Ready-made clothes in shop - 2000 Clothes in storehouse - 3000 Cash on hand - 3000 Bank account- 5000 Equity capital - 20 000 Retained profits brought forward previous year- 2000 Accounts payable to suppliers and contractors - 25 000 Payable Value added tax- 18 000 You have to open T-accounts for all positions, record all business transactions in October. You have to prepare turnover of accounts. No 1.1) ? 1.2) 2) The content of business transactions Amount, Debit Credit EUR Purchased goods on post pay conditions, invoice 7260 amount with VAT 21% Goods value without VAT ? VAT 21% Purchased materials from no VAT payer (amount 7 500 without VAT) Revenues from sales main, with VAT 18150 ? Revenues in cash on hand (till cash) without VAT VAT 21% Purchaser paid debt in bank account 25 000 Payment to supplier for previous delivery 15 000 October Inventories results registered in accounts, X X X EUR fabrics - 2500 ? clothes in shop -7545 clothes in storehouse-2800 ? unfinished orders-0 You have to close operational accounts, calculate the result of the period, prepare transactions report ? 3) 4) 5) ? 5.1) 5.2) 5.3) 5.4) 6) Exercise 3. Inventory accounting methods. Periodic inventory method. Wool Ltd. beginning balances of balance sheet accounts on 01.10 are in EUR: Other fixed assets - 15 000 Accumulated depreciation of fixed assets - 5 000 Purchasers and commissioning party debts- 30 000 Inventories balances (on the 01.01.) open separately account for each kind of inventory Fabrics -11 000 Unfinished orders -1000 Ready-made clothes in shop - 2000 Clothes in storehouse - 3000 Cash on hand - 3000 Bank account- 5000 Equity capital - 20 000 Retained profits brought forward previous year- 2000 Accounts payable to suppliers and contractors - 25 000 Payable Value added tax- 18 000 You have to open T-accounts for all positions, record all business transactions in October. You have to prepare turnover of accounts. No 1.1) ? 1.2) 2) The content of business transactions Amount, Debit Credit EUR Purchased goods on post pay conditions, invoice 7260 amount with VAT 21% Goods value without VAT ? VAT 21% Purchased materials from no VAT payer (amount 7 500 without VAT) Revenues from sales main, with VAT 18150 ? Revenues in cash on hand (till cash) without VAT VAT 21% Purchaser paid debt in bank account 25 000 Payment to supplier for previous delivery 15 000 October Inventories results registered in accounts, X X X EUR fabrics - 2500 ? clothes in shop -7545 clothes in storehouse-2800 ? unfinished orders-0 You have to close operational accounts, calculate the result of the period, prepare transactions report ? 3) 4) 5) ? 5.1) 5.2) 5.3) 5.4) 6)
