I. COST OF GOODS SOLD
Cost of goods sold (Dr)= beginning inventory (Dr)+ purchase(Dr) – ending inventory(Cr)
Entry for cost of goods sold accounts:
- Purchase account
Dr. Purchase account……………………………………………………..….xx
Cr. AP/cash at bank account……………………………………………….xx
- Opening inventory account:
Dr. opening inventory account/cost of good sold ( in income statement)………..xx
Cr. Inventory account ( in BS )………………………………………..……xx
- Closing inventory
Dr. Inventory account ( in statement of financial position)…..xx
Cr. Closing inventory account/cost of good sold ( in the income statement)…….xx
…………………………………………..
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CHAPTER 5 PREPARATION OF FINANCIAL STATEMENT
Chapter 5 Attaching file for part III(III. PRACTICE FOR FINANCIAL STATEMENTS )