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The accounting period for Syarikat Cica ends every 30 June. Comment on the appropriateness of the accounting treatment followed by Syarikat Cica based on the
The accounting period for Syarikat Cica ends every 30 June. Comment on the appropriateness of the accounting treatment followed by Syarikat Cica based on the situations below. i. Raw materials were purchased for RM80,000 on 17 March 2021. On 30 June 2021, Syarikat Cica would have to pay RM50,000 to acquire the same materials, therefore the following entry was made to recognize gains from the increase in market price of raw materials: Dr Inventories RM30,000 Cr Gains on inventories RM30,000
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