Inventory
Inventory is an asset . True or False
What is True
For goods returned to the firm by its customers
What is the purpose of return Inward ?
To increase the sales account you.
What is Credit.
For goods returned by the firm to its suppliers
What is the purpose of the Return Outwards?
To increase the Purchases account you.
What is Debit.
Assets=Liabilities + Equity/ Capital
What is the accounting equation?
On 5th August 2017, goods that had previously been sold to F. Lowe for $290 , have been returned by her.
1. Which two account is affected in the transaction above?
2. Identify what is going out of the suppliers business and what is coming into the firms
1. Return Inwards and F. Lowe account is affected
2. The goods have come in , while the goods have come out of F. Lowe inventory.
On3rd August 2017, Goods were sold on credit for $3,000 to J.Lee.
1. Which two account is affected in the transaction above?
2. Identify what is going out of the suppliers business and what is coming into the firms business.
1. J. Lee and Sales accounts were affected.
2. Goods have gone into J.Lee business while the sales have gone out
On 6th August 2017, goods previously bought for $960 were returned by the firm to K.Hogan
1. Which two account is affected in the transaction above?
2. Identify what is going out of the suppliers business and what is coming into the firms
1. K. Hogan and return outwards
2. The goods have gone into K. Hong account, while the returns have gone out.
On 1st August 2017, goods costing $1650 are bought on credit from D. Henry.
1.Which two transaction is affect?
2.Name the account that goods is coming in and out of the business?
1. Purchases account and D. Henry's account
2. Goods is coming in the purchasing account while goods is going out of D. Henry's account
True or False
Every debit entry must have a corresponding credit entry.
What is True.
True or False Assets and liabilities have the same normal balance
What is False
An increase in a liability account is recorded as a ____________
What is Credit
Liability and revenue accounts all have normal _________ balances.
What is Credit
On 2nd August 2017, goods costing $2,200 were bought , cash being paid for them immediately
1.Which two transaction is affect?
2.Name the account that is decreasing and which is increasing?
1. The cash account and the sales accounts is affected.
2. The business cash account is decreasing and the suppliers sales account is increasing
What are the four types of Accounts used in inventory or stock?
The four types of accounts use in inventory or stock are:
1. Purchases account
2.Sales accounts
3.Return inwards
4.Returns Outwards
An asset account appears on the left side of the accounting equation and is increased on the _____ side of its T account.
What is Left
On 4th August 2017, goods were sole for $ 550 ,the cash for them being paid immediately.
1. Which two account is affected in the transaction above?
2. Identify what is going out of the suppliers business and what is coming into the firms
1 The cash and the sales accounts is affected.
2. Cash have gone into the business, while sales have gone out.
The owner wrote a check for $500 for personal use. indicate the account to be debited and the account to be credited.
What is Debit - Withdrawals; Credit - Cash
Bought $45 of office supplies on credit from Walters supply store. indicate the account to be debited and the account to be credited
What is Debit - office supplies; Credit - Walters supply store
Inventory, also known as stock, refers to the physical goods and materials that a business owns with a view of future resale.
What is inventory
When goods are returned to the business by its customers asset of stock is increasing. The return inwards accounts should be debited
What is Return Inward accounts ?
When goods are sold asset is decreasing therefore, our sales account should be credited.
What is Sales Account?
When goods are return by the business to its suppliers. Assets of stocks is decreasing. The return outward accounts should be credited.
What is Return Outward Account?
When goods are bought asset of stock in increasing therefore the purchases account should be debited.
What is purchases?