On 1 September 2022, inventory had a balance of R6 000 in the general ledger of BB Enterprises. The entity uses the perpetual inventory system and the mark-up on cost is 50%. Below are the transactions for the month of September: 5 September: Bought goods on credit for R4 000 and paid R300 cash for delivery fees. 11 September: Sold inventory with a selling price of R1 200. 19 September: The owner took inventory with a cost price of R200 for his own use. 24 September: Goods with a selling price of R900 was returned by a customer and BB Enterprises issued a credit note. 29 September: Inventory with a cost price of R300 was damaged and cannot be sold. You are required to: a) List (in date order) the entries that will appear on the DEBIT side of the INVENTORY general ledger account. For each entry list the date, the contra account (account that will be credited) and the amount. b) List (in date order) the entries that will appear on the CREDIT side of the INVENTORY general ledger account. For each entry list the date, the contra account (account that will be debited) and the amount.

On 1 September 2022, inventory had a balance of R6 000 in the general ledger of BB Enterprises. The entity uses the perpetual inventory system and the mark-up on cost is 50%. Below are the transactions for the month of September: 5 September: Bought goods on credit for R4 000 and paid R300 cash for delivery fees. 11 September: Sold inventory with a selling price of R1 200. 19 September: The owner took inventory with a cost price of R200 for his own use. 24 September: Goods with a selling price of R900 was returned by a customer and BB Enterprises issued a credit note. 29 September: Inventory with a cost price of R300 was damaged and cannot be sold. You are required to: a) List (in date order) the entries that will appear on the DEBIT side of the INVENTORY general ledger account. For each entry list the date, the contra account (account that will be credited) and the amount. b) List (in date order) the entries that will appear on the CREDIT side of the INVENTORY general ledger account. For each entry list the date, the contra account (account that will be debited) and the amount.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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