A business commenced with capital in cash of $1,000. Inventory costing $800 plus sales tax ispurchased on credit, and half is sold for $1,000 plus sales tax, the customer paying in cash at once. The sales tax rate is 20%.
What would the accounting equation after these transactions show?
Assets????????????????????????????????????????????????????????????????????????????????????????? ??$?
Opening cash???????????????????????????????????????????????????????????????????????????? ??1,000?
Cash received $(1,000 + 200 sales tax)???????????????????????????????????? ? 1,200
Closing cash?2,200?Inventory $(800 - 400)???????????????????????????????????? 400?
??????????????????????????????????????????????????????????????????????????????????????????????????? ? 2,600
?Liabilities??Opening liabilities? Sales tax payable $(200 - 160)?????????40?
Purchase inventory $(800 + 160 sales tax)?????????????????????????????????????960
?Closing liabilities?1,000?Capital? Opening capital???????????????????????? ?1,000
?Profit on sale of inventory $(1,000 - 400)????????????????????????????????????????600
?Closing capital????????????????????????????????????????????????????????????????????????????? 1,600
多做幾道
Which accounting concept should be considered if the owner of a business takes goods from inventory for his own personal
use?
Which accounting concept should be considered if the owner of a business takes goods from inventory for his own personal
use?
According to the IASB's Conceptual Framework for Financial Reporting, which TWO of the following are part of faithful
representation?1 It is neutral2 It is relevant3 It is presented fairly4 It is free from material error
Which of the following accounting concepts means that similar items should receive a similar accounting treatment?
Listed below are some characteristics of financial information.1 Relevance2 Consistency3 Faithful representation4 Accuracy
Which of these are qualitative characteristics of financial information according to the IASB's Conceptual Framework for
Financial Reporting?
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