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a business had an opening inventory of $180000 and a closing inventory of 200 000 in its financial statements for the year ended 31 december 20×5.Which of the following entries for these opening and closinginventory figures are made when completing the financial records of the business?
A: Dr inventory account 180 000
CR statement of profit or loss 180 000
DR sopl 220 000
CR inventory 220 000
B: Dr SOPL 180 000
CR inventory 180000
dr inventory 220 000
cr sopl 220 000
C: inventory 40 000
purchases 40 000
D: purchases 40 000
inventory 40 000
Mr john moffat I am absolutely dumbfounded when i saw this question. can you please please help me i have tried to make sense of it but couldnt.
It seems that you are not watching my free lectures because the entries for dealing with the inventory at the end of the year are explained in detail.
The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
Please watch the lectures and then ask again if you are still not clear.