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November 30, 2020 at 2:02 pm
For year end Sales which happend afer year end do we need to post Sales Accrual as we did in Purchases?
means Debit Accrual and credit Sales?
Kim Smith says
November 30, 2020 at 2:27 pm
NO – the “goods received not invoiced” accrual takes account of the timing difference between the receipt of goods recorded in closing inventory (i.e. before the y/e) and corresponding purchase invoice. A sale after the y/e is next year’s revenue – a purchase of goods after the y/e is next year’s purchase – neither relate to the current accounting period. Please remember to ask questions in the ask the tutor AA forum – not here, which is a space only for comments or queries on the lecture itself.
August 16, 2020 at 12:23 pm
Just to clarify, at ‘6:48 mins’ you stated an example, so in layman’s language did you mean that “Stock-take should be done only once and that too carefully in order to avoid duplication of efforts, work and costs, as there there will be no magic the second time you go there to stock-take the same inventory?”
Kind Regards Antriksh Kaul
August 16, 2020 at 4:48 pm
Management only gets “one shot” at a year-end stocktake – if they don’t get it right “on the day” quantities will move on – goods will be purchased and sold (business activities cannot be held up indefinitely to facilitate stock taking).
November 12, 2019 at 9:31 am
Hi sir, Could you clarify, you say closing inventory overstated by 90,000 therby profit also overstated. If reported profit is 30,000 how does the value turn to -60,000. Shouldn’t it be 120,000?
November 26, 2019 at 7:35 am
Cos = Opening inventory + purchases – closing inventory If closing inventory is overstated by $x, Cos is understated by $x and hence profit is overstated by $x. So if $s is $90k and profit is $30k, profit becomes a $60k loss ($30k – $90k) after correction.
Libin Jacob ACCA says
May 14, 2018 at 2:28 am
Sir, is there anything wrong in the following sentences which I copied here from the last sentence of Audit of Inventory chapter, page 91
If something is regarded as having been sold it should be counted as enclosing inventory if it is not regarded as having been sold at yearend, it should be enclosing inventory.
Ken Garrett says
May 14, 2018 at 4:54 am
Yes, it’s rubbish! Should say:
If something is regarded as having been sold at year-end it should not be counted in closing inventory; if it is not regarded as having been sold at year-end, it should be in closing inventory.
Thanks for pointing it out. We will correct it shortly.
March 20, 2017 at 7:04 pm
kindly help are these the procedures for audit of inventory or for inventory stock taking?
March 21, 2017 at 8:08 am
Attending inventory stocktaking is an important part of the audit of inventory where inventory is material.
December 29, 2015 at 9:29 am
i cant download this video. please help me…
December 29, 2015 at 11:13 am
You cannot download videos
April 14, 2017 at 3:03 am
Watch it on Youtube. Then copy the link and use keepvid.com to download the video.
September 27, 2015 at 7:07 am
What about audit procedure for continuos and During the inventory count
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