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Diesel fuel in inventory at 1 November 20X7 was $12500,and there were invoices awaited for $1700.During the year to 31 October 20X8,diesel fuel bills of $85400 were paid ,and a delivery worth $1300 had yet to be invoiced.At 31 October 20X8,the inventory of diesel fuel was valued at $9800.
what is the value of diesel fuel to be charged to the statement of profit or loss and other comprehensive income for the year to 31 October 20X8?
A)$87700
B)$89400
C)$88500
D)$91100
Please ,explain to me detailed.You must have an answer in the same book in which you found the question, and so you should ask about whatever it is in the answer that you are not clear about!
You first need to calculate the amount to fuel purchased. This is the cash paid, plus the amount still owing at the end of the year, less the amount that was owing at the start of the year.
Having calculated the purchases, you can work out the cost of the fuel actually used by taking the purchases, adding the opening inventory and subtracting the closing inventory. This is then the cost of the fuel used which is what appears on the SOPL.
Sir,l did not basically understand “there were invoices awaited” expression please,explain meaning of this expression to me
l comprehend so:
this expression means that invoices were sent and the money is expected
OR
invoices should be sent in October 20×7 but have not been sent yetl understand correctly ?? please clarify.
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