有會計科會考試題發問(included and not included in stock valuation)?請幫忙

2008-08-14 1:14 pm

CE1998 Q.10(vi)
Office equipment costing $7,500, with a list price of $9,000, was taken from
the showroom for company's use, but no entries had been made. It WAS
INCLUDED in the trading stock at cost at 31/3/98 (year-end)

Answer: Journal correction
Dr Office equipment
Cr Trading - STOCK

CE1991 Q. 3 (ii)
A computer costing $30,000 was taken from the stock on 1 March 1990 to be used by the sales
manager on company business. No entries were made in the books about this, and this computer WAS NOT INCLUDED in the stock valuation at 30/6/90 (yr end)

Answer: Journal correction
Dr Computer
Cr Trading - PURCHASES

Why do the answers (Cr entries) differ in both cases?
What does it mean by "included" in the stock valuation?

回答 (1)

Maverick

2008-08-15 5:51 pm

✔ 最佳答案

In Q1. the said item was included in stock and Q2 not in stock. You should understand the basic mechanisms in stock and purchase under the double entry system. When you purchase an item, you Dr. Purchase and Cr. A/P or Bank. The correct entry should be Dr. Inventory/Stock and not Dr. Purchase. The entry to be passed through upon sales or usage is Dr. Cost of Sales/Office Equipment Cr. Inventory/Stock. In Q1, since the stock is still included in inventory, therefore the origninal entry upon purchase of item was Dr. Inventory and Cr. A/P or Bank. Therefore upon usage, the entry should credit inventory. In Q2, the item was not included in stock, the original entry upon purchase therefore was Dr. Purchase Cr. A/P or Bank. Since it was already included as cost, when you use it as an asset, you must reduce cost previously charged and reclassify it as asset. That is the reason why the answers in Q1 and Q2 differs.
Hope it can be of help!

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