The document discusses accounting for inventory and non-current assets. It states that the cost of goods sold is calculated as opening inventory plus purchases minus closing inventory. It also explains that closing inventory is accounted for by debiting the inventory account and crediting the trading account. Inventory should be valued at the lower of cost or net realizable value. The document also discusses accounting for non-current assets, noting that capital expenditures acquire non-current assets while revenue expenditures maintain them. Non-current assets are depreciated over their useful lives.
The document discusses accounting for inventory and non-current assets. It states that the cost of goods sold is calculated as opening inventory plus purchases minus closing inventory. It also explains that closing inventory is accounted for by debiting the inventory account and crediting the trading account. Inventory should be valued at the lower of cost or net realizable value. The document also discusses accounting for non-current assets, noting that capital expenditures acquire non-current assets while revenue expenditures maintain them. Non-current assets are depreciated over their useful lives.
The document discusses accounting for inventory and non-current assets. It states that the cost of goods sold is calculated as opening inventory plus purchases minus closing inventory. It also explains that closing inventory is accounted for by debiting the inventory account and crediting the trading account. Inventory should be valued at the lower of cost or net realizable value. The document also discusses accounting for non-current assets, noting that capital expenditures acquire non-current assets while revenue expenditures maintain them. Non-current assets are depreciated over their useful lives.