Hello everyone!
I'm Elias, economics student, and I've just registered on the forum!
I am currently struggling with these two accouting exercises, as I can't find any solution for them. Would you be so kind to explain me how they work?
A)Opening at 01/01/2015: Opening balance 800 in credit, stock 800 in debit.
Purchase inventory: stock 3400 in debit, supply A/P 3400 in credit
Sells inventory: stock 4250 in credit, supply A/R 4265 in debit
Realised gain: 585 in credit
Final balance of the account stock: 65, value at 31.12.2015 650, realised gain: 650-65 = 585
I don't get the sells inventory part as well as the realised gain. Could you explain to me why is like that? Thanks!
B)Equipment supply A/R 175000 in credit, equipment cost 175000 in debit
Being equipment cost 17500 in debit, depreciation at 2015 87500 //I don't get this
Equipment A/R 9000 in debit, VAT 15300 in credit, equipment cost 17500 in credit, depreciation 87500 in debit, capital gain 2500 in credit //I don't get this
Thank you very much!
I'm Elias, economics student, and I've just registered on the forum!
I am currently struggling with these two accouting exercises, as I can't find any solution for them. Would you be so kind to explain me how they work?
A)Opening at 01/01/2015: Opening balance 800 in credit, stock 800 in debit.
Purchase inventory: stock 3400 in debit, supply A/P 3400 in credit
Sells inventory: stock 4250 in credit, supply A/R 4265 in debit
Realised gain: 585 in credit
Final balance of the account stock: 65, value at 31.12.2015 650, realised gain: 650-65 = 585
I don't get the sells inventory part as well as the realised gain. Could you explain to me why is like that? Thanks!
B)Equipment supply A/R 175000 in credit, equipment cost 175000 in debit
Being equipment cost 17500 in debit, depreciation at 2015 87500 //I don't get this
Equipment A/R 9000 in debit, VAT 15300 in credit, equipment cost 17500 in credit, depreciation 87500 in debit, capital gain 2500 in credit //I don't get this
Thank you very much!
