Inventory Checklist and Double Entries

POAwesome 1) 2) 3) 4) 5) 6) 7) Inventory (Create Impairment loss on inventory (expense), Inventory () BankruptWritten off (Confirmed) (Trade receivables (-), Allowance (-) or Create Impairment loss on TR (expense)) Estimate Make Allowance to be the estimated amount. Create Impairment loss on TK (expense)] FORMAT CHECKLIST Long-term borrowing [Create Current portion of long term borrowing (current liability), Bank loan/Loan (-)) Depreciation of non-current assets [Create Depreciation-? (expense), Accumulated Depreciation -? (+)] Expense Create Prepaid expense (current asset), Expense (-) Create Expense Payable (current liability), Expense (+) Income Create lncome received in advance (current liability), Income (-) Create Income receivable (current asset), Income (+) General Adjustments Prepared by Ms Shalini 2023

Double entits fer inverojg Transaction Business sells inventory to customer Customer returns inventory back to business Business receives a cheque from customer Cheque from customer was dishonoured Accounts affected On credit Sales revenue + Trade receivable: ABC + Inventory Cost of sales + On cash terms Sales revenue + Cash in hand/ Cash at bank + Inventory Cost of sales + On credit Sales returns + Trade receivable: ABC - Inventory + Cost of sales -Give refund Sales returns + Cash in hand / Cash at bank -Inventory + Cost of sales -Without cash discount Cash at bank + Trade receivable: ABC With cash discourt Cash at bank + Trade recev ble: ABC-Discount allowed Trade receivable: ABC Without cash discount given previously Cash at bank -Trade receivable: ABC + Cash discount given previously Cash at bank Trade receivable: ABC +

Business buys inventory from supplier Business returns inventory to supplier Business pays suppliers Discount allowed -Trade receivable: ABC + On credit Inventory + Trade payable: XYZ + On cash terms Inventory + Cash in hand / Cash at bank -On credit Inventory -Trade payable: XYZ -Received refund Inventory -Cash in hand/ Cash at bank + Trade payable: XYZ Cash in hand /Cash at bank