6- What do you mean by purchase merchandise; assets or expense?
Answers were Sorted based on User's Feedback
If its purchases made for office use will consider as Assets ,
Otherwise will consider as Expenses
Is This Answer Correct ? | 1 Yes | 0 No |
Answer / aqeel raza
All purchases unsold for doing business are assets for example a trader purchases items for sale and to get profit over it and a manufacturer purchases different materials to make goods of his business. All goods sold help to recover the amount of purchases as well as profit over it. Therefore, the purchases which were assets unsold when sold changed the name as sale.
Because of the reason in question, the purchase of merchandise is taken in expense and revenue ledger to make easy gross profit and the unsold merchandise will be the part of general ledger account or balance sheet accounts.
All purchase returns and purchase discounts which are contra assets but reduce purchases in income summary are temporary accounts may belong to expense and revenue ledger.
Is This Answer Correct ? | 0 Yes | 0 No |
salary is paid to a person A wrongly twice a month and after detecting the mistake the salary is paid to the right person B.write the journal entry for the two sequences.
WHAT IS SAP????
when a customer buys a good. we have to debit bank and credit inventory equaly. but wouldnt selling a good make a profit?
what stock transfer applicable in sister concern unit.
What do u mean by press releases
What is Fund Flow and how to prepare that?
Capital market
how to pass the opening stock entry & closing Stock entry in Tally ?
12 Answers KBC, TCS,
could i know how to accounting lease intrest ?
wHAT IS DIFFERANCE BETWEEN RETAIL INVOICE & CASH MEMO?
vat comes in what type of head in golden rules procedure
Tell me entries to revenues accounts such as service revenues are usually?