A Accounting

Diesel fuel to be used ( video below)

Diesel fuel in inventory at 1 November 20X5 was $3,125 , and there were invoices awaited for $425. During the year to 31 October 20X6, diesel fuel bills of $21,350 were paid, and a delivery worth $325 had yet to be invoiced. At 31 October 20X6, the inventory of diesel fuel was valued at $2,450.

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 20X6?

Answer

Diesel fuel purchased

Balance c/fwd = Balance b/fwd + purchase – payments

 $
Balance b/fwd (425)
Payments 21,350
Balance c/fwd 325
Purchases 21,250
Cost of fuel used
 $
Opening inventory 3,125
Purchases 21,250
Closing inventory (2,450)
Transfer to SPL 21,925


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