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The entries required to correctly reflect inventory and cost of sales in the financial accounts for the first year of trading are:
A Debit inventory (SOFP) -closing inventory Credit trading a/c -closing inventor
Debit trading a/c -opening inventory Credit inventory(SOFP) -opening inventoryl consider that this is correct variant.
???It would be correct, except that since it is the first year of trading then there is no closing inventory!
Are you watching my free lectures, because I work through the entries in the lectures?
The lectures are a complete free course for Paper F3 and cover everything needed to be able to pass the exam well.l could not understand
these entries are correct or not?
the other variantsC) Debit inventory(SOFP)-closing inventory Credit payables -closing inventory
D)Debit inventory (SOFP)-closing inventory Credit trading a/c -closing inventory
now, l think that the answer is D
because,in the trading of first year ,opening inventory should not be
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