Posted on September 19th, 2008 by
kclim in
Fundamental Accounting Principles
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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Tagged As: accountancy, accounting, bookkeeping, compensation received, free accounting lessons, loss of assets, loss on damaged inventories, periodic method, perpetual method
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
