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diesel fuel inventory at 1 november 2007 was $12500 and there were invoices awaited for $1700 . During the year 31 october 2008 , diesel fuel bills of $85400 were paid and a delievery of worth $1300 had yet to be invoiced . at 31 october 2008, the inventory of diesel fuel was valued at $9800 . what is the value of diesel fuel to be changed to the statement of profit and loss and other comprehensive income statement for the year to 31 october 2008 ?
First calculate how much diesel fuel was purchased:
You know the cash paid, add on the accrual as at 31 October 2008 and subtract the accrual as at 1 November 2007.
When you know how much was purchased, you can then calculate how much was used by adding the opening inventory and subtracting the closing inventory.
Then you have the figure for the SOPOL.
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