In Example 1 of my previous post, Inventories or Stocks – Part 2, Methods of Recording in General Ledger, the cost of purchasing inventories had been fixed in order to show the effect of two different methods of recording in General Ledger clearly. In realit...
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Tagged As: accountancy, accountant, accounting, accounts, bookkeeping, cost formula, cost of goods sold, cost of sales, FIFO and LIFO, FIFO examples, FIFO LIFO Weighted Average, FIFO method, inventories, LIFO method, periodic method, perpetual method, recording inventories, recording stocks, small business, stocks, Weighted Average method
There are two common methods of recording inventories or stocks in the General Ledger of business entities:- 1. The Periodic Method 2. The Perpetual Method The choice of the method used will directly determine the double entries for the recording of inventorie...
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Tagged As: accountancy, accounting, accounts, bookkeeping, closing inventories, cost of goods sold, cost of sales, inventories, opening inventories, periodic method, perpetual method, recording inventories, recording stocks, small business, stocks, what is inventory
