Tag: periodic method

Various Types of Transactions – Collection from Other Source of Revenue and Income, Compensation Received for Loss of Assets (Part 4e)

Business entities may encounter some unfortunate events such as fire, flood or others that cause damage to their assets. After assessment of the damages caused, the insurance companies will then pay the relevant compensation to these business entities. If the ...

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Inventories or Stocks – Part 3, Cost Formula

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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Inventories or Stocks – Part 2, Methods of Recording in General Ledger

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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