On 1 September 2022, inventory had a balance of R6 000 in the general ledger of BB Enterprises. The entity uses the perpetual inventory system and the mark-up on cost is 50%. Below are the transactions for the month of September: 5 September: Bought goods on credit for R4 000 and paid R300 cash for delivery fees. 11 September: Sold inventory with a selling price of R1 200. 19 September: The owner took inventory with a cost price of R200 for his own use. 24 September: Goods with a selling price of R900 was returned by a customer and BB Enterprises issued a credit note. 29 September: Inventory with a cost price of R300 was damaged and cannot be sold. You are required to: a) List (in date order) the entries that will appear on the DEBIT side of the INVENTORY general ledger account. For each entry list the date, the contra account (account that will be credited) and the amount. b) List (in date order) the entries that will appear on the CREDIT side of the INVENTORY general ledger account. For each entry list the date, the contra account (account that will be debited) and the amount.
On 1 September 2022, inventory had a balance of R6 000 in the general ledger of BB Enterprises. The entity uses the perpetual inventory system and the mark-up on cost is 50%. Below are the transactions for the month of September: 5 September: Bought goods on credit for R4 000 and paid R300 cash for delivery fees. 11 September: Sold inventory with a selling price of R1 200. 19 September: The owner took inventory with a cost price of R200 for his own use. 24 September: Goods with a selling price of R900 was returned by a customer and BB Enterprises issued a credit note. 29 September: Inventory with a cost price of R300 was damaged and cannot be sold. You are required to: a) List (in date order) the entries that will appear on the DEBIT side of the INVENTORY general ledger account. For each entry list the date, the contra account (account that will be credited) and the amount. b) List (in date order) the entries that will appear on the CREDIT side of the INVENTORY general ledger account. For each entry list the date, the contra account (account that will be debited) and the amount.
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter6: Accounting For Merchandising Businesses
Section: Chapter Questions
Problem 9PA: On December 31, 2019, the balances of the accounts appearing in the ledger of Wyman Company are as...
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Transcribed Image Text:On 1 September 2022, inventory had a balance of R6 000 in the general ledger of
BB Enterprises. The entity uses the perpetual inventory system and the mark-up on
cost is 50%. Below are the transactions for the month of September:
5 September: Bought goods on credit for R4 000 and paid R300 cash for delivery
fees.
11 September: Sold inventory with a selling price of R1 200.
19 September: The owner took inventory with a cost price of R200 for his own use.
24 September: Goods with a selling price of R900 was returned by a customer and
BB Enterprises issued a credit note.
29 September: Inventory with a cost price of R300 was damaged and cannot be
sold.
You are required to:
a) List (in date order) the entries that will appear on the DEBIT side of the
INVENTORY general ledger account. For each entry list the date, the contra
account (account that will be credited) and the amount.
b) List (in date order) the entries that will appear on the CREDIT side of the
INVENTORY general ledger account. For each entry list the date, the contra
account (account that will be debited) and the amount.
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