Question 10.3

i am also getting confused does oil in hand is consdered as inventory

As with all expenses we only charge in the SOPL the amount used during the period. If you buy oil but still have some of it left at the end of the year then you haven't used it (the amount left will be used in the following year). And yes, if you have any left at the end of the year it is inventory and will appear on the SOFP.

Thanks John

You are welcome :-)