Typical Transaction 11
Example: Pay Purchase of Stock Change Values from 30,000 to 60,000
The entries for this transaction in the Accounting System can be seen here, in the AccountingLab and in the Accounting System, Operation O35D, Q1:
Cash Payment for Inventory Purchase | Decrease in Current Assets (-) |
---|---|
Decrease in Creditors (-) |
Typical Transaction 13
Example: Adjustment for Inventory Expense – 50% Adjustment.
In this example, half of all promotional materials, already received and paid (TT10 and TT11) have been used for promotional activities.
The entries for this transaction in the Accounting System can be seen here, in the AccountingLab and in the Accounting System, Operation O35D, Q1:
Adjustment for Inventory Expenses | Decrease in Current Assets (-) |
---|---|
Decrease in Retained Earnings (-) |
Typical Transaction 11 (TT11) is the payment for the booking (recognition) of stock, Typical Transaction 10 (TT10) and as such they are both interconnected. Typical Transaction 13 (TT13) is the adjustment for inventory expense during the accounting period. It is interconnected to Typical Transactions 10 (TT10) and Typical Transaction 11 (TT11) as shown in the table below. Changes in Balance Sheet items for TT10, TT11 and TT13 are in red:
Balance Sheet | ||||
---|---|---|---|---|
Original | After Changes TT10 | After Changes TT11 | After Changes TT13 | |
Assets | ||||
Current Assets | 767,850 | 827,850 | 767,850 | 737,850 |
Bank | 758,550 | 758,550 | 698,550 | 698,550 |
Debtors and Prepayments | 9,300 | 9,300 | 9,300 | 9,300 |
Other Current Assets (Stock) | 0 | 60,000 | 60,000 | 30,000 |
Fixed Assets | 44,000 | 44,000 | 44,000 | 44,000 |
TOTAL ASSETS | 811,850 | 871,850 | 811,850 | 781,850 |
Liabilities | ||||
Current Liabilities | 44,300 | 104,300 | 44,300 | 44,300 |
Creditors | 44,000 | 104,000 | 44,000 | 44,000 |
Accruals | 300 | 300 | 300 | 300 |
Long Term Liabilities | 0 | 0 | 0 | 0 |
Long Term Loan | 0 | 0 | 0 | 0 |
0 | 0 | |||
Equity | 767,550 | 767,550 | 767,550 | 737,550 |
Shareholders’ Equity | 800,000 | 800,000 | 800,000 | 737,550 |
Income Statement | -32,450 | -32,450 | -32,450 | -62,450 |
TOTAL Liabilities + Equity + Retained Earnings | 811,850 | 871,850 | 811,850 | 781,850 |