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IAS 2

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › IAS 2

  • This topic has 3 replies, 2 voices, and was last updated 12 years ago by AvatarJohn Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
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  • April 6, 2014 at 1:59 pm #164528
    Avatarnaeem26
    Member
    • Topics: 3
    • Replies: 3
    • ☆

    IN CHPT 9 TEST QN 1 WHY IS THE ANS B AND NOT A?

    April 6, 2014 at 2:13 pm #164531
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54836
    • ☆☆☆☆☆

    The inventory figure in the accounts is the inventory that is counted at the end of the year.

    During the year all purchases of inventory are debited to the purchases account. If the owner then takes some of those goods we need to credit purchases because only the balance of the purchases would actually be used by the business.

    The inventory in the accounts is what was counted at the very end of the year which will be after the owner had taken the goods.

    April 7, 2014 at 2:13 pm #164633
    Avatarnaeem26
    Member
    • Topics: 3
    • Replies: 3
    • ☆

    thank you, Mr. John

    April 7, 2014 at 2:57 pm #164639
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54836
    • ☆☆☆☆☆

    You are welcome 🙂

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