RECORDING
TRANSACTIONS:
• INVENTORY
• BALANCING-OFF ACCOUNTS
• THE TRIAL BALANCE
, INVENTORY
Normally, goods and services are sold above cost pri
the difference being profit.
When goods and services are sold for less than their
cost, the difference is a loss.
An increase in inventory:
The purchase of additional goods. (Purchase accoun
The return in to the business of goods previously sold.
(Return Inward account)
, INVENTORY
A Decrease in inventory:
The sales of goods. (Sales account)
Goods previously bought by the business now
being returned to the supplier. (Return Outward
account)
TRANSACTIONS:
• INVENTORY
• BALANCING-OFF ACCOUNTS
• THE TRIAL BALANCE
, INVENTORY
Normally, goods and services are sold above cost pri
the difference being profit.
When goods and services are sold for less than their
cost, the difference is a loss.
An increase in inventory:
The purchase of additional goods. (Purchase accoun
The return in to the business of goods previously sold.
(Return Inward account)
, INVENTORY
A Decrease in inventory:
The sales of goods. (Sales account)
Goods previously bought by the business now
being returned to the supplier. (Return Outward
account)
