Double entry accounting exercise

Discussion in 'Exams and Studying' started by andrixx, Feb 11, 2019 at 8:46 AM.

  1. andrixx


    Likes Received:
    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!
    andrixx, Feb 11, 2019 at 8:46 AM
    1. Advertisements

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments (here). After that, you can post your question and our members will help you out.