Diesel fue in inventory at November 2014 was $14,070, and there were invoices awaited for $5,040.
During the year to 31 October 2015, diesel fuel bills of $61,725 were paid, and a delivery worth $4,032 had yet to be invoiced. At 31 October 2015, the inventory of diesel fuel was valued at $16,884.
What is the value of diesel fuel to be charged to the statement of profit or loss and other comprehensive income for the year to 31 October 2015?
Suggested solutions
Diesel Inventory Account
| Debit | Credit | ||
| Opening Balance | 14,070 | ||
| Adjustment | 2,814 | ||
| Closing Balance | 16,884 |
Payable (Accrual) Account
| Debit | Credit | ||
| Opening Balance | 5,040 | ||
| Adjustment | 1,008 | ||
| Closing Balance | 4,032 |
Diesel Fuel Expense Account
| Debit | Credit | ||
| Cash Paid | 61,725 | ||
| Adjustment Diesel account | 2,814 | ||
| Adjustment Accrual account | 1,008 | ||
| Total Heating Oil expenses | 57,903 |
To do the same topic again in ACCA F3 Prepayment and Accrual 4