6- What do you mean by purchase merchandise; assets or expense?
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If its purchases made for office use will consider as Assets ,
Otherwise will consider as Expenses
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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.
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what is the use preparing balance sheet
Dear sir we are running a export enterprises and we are marchent and exporter we purchaige the goods from mahahrashtra /gujrat and many indian stats our iec cod is issue from varanasi and our firam is registerd from azamgarh utter pardesh kindly advise me can i purchige the goods from gujrat and send direct to port or shude we inter the goods in utter pardesh then we sent to port i m asking this question because our salse department is not issue form H kindly give me advise i m waiting for your for reply thanks and regards e mail id: burque786azm@yahoo.com javed
what is factoring
1 Answers Capital IQ, Pyroferus,
Journalize the Following: 2. Monthly credit sales were $ 35,000 3. Received Cash receipt payments on Receivables in the amount of $ 10,000. 4. Customers’ cheque in the amount of $ 100 bounces and was re-deposited. Book both entries. 5. Material is bought on account for £ 100,000. The exchange rate is Four pounds to One Dollar. Then, later, merchandize is paid for. The exchange rate is Five pounds to One Dollar. Book both entries in Dollar when merchandize is bought and when it was paid. 6. Materials worth $ 20,000 was purchased on account and paid for with 1% discount. Book both entries. 7. Record the purchase of Direct Material on Account in the amount of $ 20,000. Half of it was for stock and the other half for a specific job order. 8. Record the disbursement of $ 1,000 raw material to shop floor for use on specific job
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