Archive about 'Stock Write Off and Provision'

Briefly explain what do we mean by continuous inventory records and "continuous" count

Tweet Where a business holds considerable quantities of varied inventory, there is a need to maintain continuous inventory records which is a “card” kept for every item of inventory, showing receipts and issues from the stores and a running total. To ensure the record cards are correct, store personnel will then need to at least […]

Explain what are Forfeited Shares, what are the ways to deal with forfeited shares and the bookkeeping or accounting double entry system when dealing with forfeited shares

Tweet Forfeited shares  When a shareholder is unable or unwilling to pay the calls made by the company on his or her shares, the directors have the power to forfeit the shares. Once the shares have been forfeited the person concerned is no longer a shareholder in respect of those shares forfeited. How to deal […]

For Accounting purpose, how do we treat a reduction of the value of stock

Tweet If, at the end of an accounting period, stocks whether it is raw materials, work-in-progress or finished goods are known to be worthless ( may be due to technology changes, no demand,etc) or worth less than their orginal cost, the value of the stocks should be written down to:  ZERO if they are worthless […]

Financial Accounting Quiz on Basic accounting

Tweet Refresh or test your accounting knowledge on Basic accounting: Multiple Choice Questions (with answer(below)) 1. Which of the following is a form of the balance sheet equation? a. Assets=Liabilities+(Paid in Capital + Retained Income) b. Assets+ Liabilities= Owners’ Equity c. Assets + Owner’s Equity =Liabilities d. Assets-Paid in capital = Liabilities-Retained income 2. _________ are […]

Sending Free Greeting Cards

Tweet Greeting cards are important social networking tools!! Send the below lovely greeting cards to your loved one, your contacts, your teachers, your friends, relatives on all different types of occasions. Build your social networking both for your friendship and careers. There is no cost at all !     Anniversary At Work   Birthday […]

Types Of Subsidiary Book-The Sales Journal

Tweet The Sales Journal This Journal records all sales on CREDIT. The book is written up from the duplicate of sales invoices. It contains only credit sales related to the goods originally bought for resale. Sales Journal as follows: Date Invoice No Particulars Folio No Details($) Monthly Total($) 2007 Jan 1  4230 Mr ABC  SL […]

Accounting Question Test With Answer FS No 1 On Financial Statements

Tweet 1.The primary purpose of the balance sheet is to    the financial position of the reporting entity at a particular point in time             b.measure the net income of a business up to a particular point in time             c.determine cash flow for the period    the difference between cash inflows and […]

The Difference Between Periodic Inventory System And Perpetual Inventory System

Tweet Tabulated below the major differences between Periodic Inventory System and Perpetual Inventory System:   Periodic Inventory System Perpetual Inventory System Inventory account and cost of goods sold are non-existent until the physical count at the end of the year. Account and the balance of costs of goods sold and inventory account exist all the […]

Stock Control System- Re-Order Level System (Part 3)

Tweet Let’s look at the first type of Stock control system namely the Re-Order Level System which is also known as the Two-Bin system: Traits/Characteristic Of This System:   ·  A pre-determined re-order level is set for each stock item;   ·      Once the stock falls below the re-order level, a replenishment order is issued […]

Objective Of Stock Control & Types Of Control Systems (Part 2)

Tweet This article basically explains the objective of Stock control and the major types of Stock control system. Objective of Stock Control: In my article, I have narrated the costs of holding too much stock. Hence, the overall objective of Stock Control is to maintain stock level so that the total holding costs are at […]