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    • Profile photo of MikeLittle says

      Yes, all foreign denominated values at converted but, in the case of cash, I have visions of €32 in a cash box in the cashier’s office left over from a director’s visit to a European client. You wouldn’t bother converting that on the grounds of immateriality. In practice the cashier would, with permission, put £20 from their own funds and take the euros in readiness for their own foreign holiday next year.

      In fact, in practice, those euros wouldn’t even leave the director’s possession! They would be explained away as “incidental expenses where I was not able to get a receipt”! (coffee from a coffee machine or parking where the ticket machine ate your ticket whilst lifting the barrier for you to drive out from the car park)

      Translation of the currency is unrealised

      Please, in future, post questions like this on the Ask the Tutor page

  1. Profile photo of MikeLittle says

    The opening inventory is DEBITED to statement of profit or loss – whatever makes you think that it’s credited?

    The figure for the statement of financial position is the one on the debit side below the total lines

    Ok?

  2. Profile photo of fahim231 says

    hello sir – in relation to your inventory T account – is opening inventory credited to the income statement? and which figure of the account would you put in the balance sheet?

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