• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Inventory

Forums › ACCA Forums › ACCA FA Financial Accounting Forums › Inventory

  • This topic has 6 replies, 4 voices, and was last updated 7 years ago by Chris.
Viewing 7 posts - 1 through 7 (of 7 total)
  • Author
    Posts
  • February 1, 2018 at 9:24 am #434390
    suleymanabuzerli
    Member
    • Topics: 84
    • Replies: 32
    • ☆☆

    F3 BPP:
    topic Inventory
    Recognition as an expense
    l met such treatment

    The carrying amount is recognised as an expense in the period in which the related revenue is recognised
    in that case,if enterprise sells old inventory, the amount of income is included in P/L statement as expense?

    February 2, 2018 at 5:52 pm #434737
    secondstar
    Member
    • Topics: 16
    • Replies: 220
    • ☆☆☆

    No. You’re getting it wrong here. Let me simplify it.

    When inventory is purchased, an expense is incurred. This expense is recorded as:

    Dr Purchases
    Cr Cash

    When inventory is sold, income is received. The entry to record this sale is:

    Dr Cash
    Cr Sales

    When the accounting period ends, the income from this sale is included in ‘Revenue’ heading in SOPL and the expense is included in the ‘Cost of Sales’ heading in SOPL (either in the Opening Inventory or Purchases).

    As far as selling old inventory is concerned, income is included in the ‘Revenue’ while the expense is included in the ‘Opening Inventory’ in Cost of Sales.

    February 2, 2018 at 8:47 pm #434754
    suleymanabuzerli
    Member
    • Topics: 84
    • Replies: 32
    • ☆☆

    thank you very much
    l have already understood clearly

    February 3, 2018 at 7:51 pm #434937
    secondstar
    Member
    • Topics: 16
    • Replies: 220
    • ☆☆☆

    You are welcome

    February 9, 2018 at 12:08 pm #436105
    thezadzzz
    Participant
    • Topics: 25
    • Replies: 17
    • ☆

    Why is it:

    Dr Cash…….

    February 9, 2018 at 1:34 pm #436110
    Chris
    Member
    • Topics: 7
    • Replies: 600
    • ☆☆☆☆

    @thezadzzz said:
    Why is it:

    Dr Cash…….

    When you sell inventory for cash, you receive cash, so the entry to record this is Dr Cash.

    You can of course also sell inventory on credit in which case you initially Dr Receivables, and then Cr Receivables and Dr Cash when the customer settles their bill.

    February 9, 2018 at 1:34 pm #436111
    Chris
    Member
    • Topics: 7
    • Replies: 600
    • ☆☆☆☆

    @thezadzzz said:
    Why is it:

    Dr Cash…….

    When you sell inventory for cash, you receive cash, so the entry to record this is Dr Cash.

    You can of course also sell inventory on credit in which case you initially Dr Receivables, and then Cr Receivables and Dr Cash when the customer settles their bill.

  • Author
    Posts
Viewing 7 posts - 1 through 7 (of 7 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • dkessilfie on FM Chapter 1 Questions – Financial management objectives
  • ahmadhoney on ACCA Advanced Audit and Assurance (AAA) The Audit Report 3: Types of Audit Report
  • Bimasha@123 on Discounted Cash Flow Techniques – ACCA Advanced Performance Management (APM)
  • Ken Garrett on Discounted Cash Flow Techniques – ACCA Advanced Performance Management (APM)
  • Bimasha@123 on Discounted Cash Flow Techniques – ACCA Advanced Performance Management (APM)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in