Where is your opening stock in the trial balance? You have opening stock of £500 in the P&L but nothing in the trial balance. The closing stock in the P&L and balance sheet is £500 will of course be a period end adjustment but the opening stock in the P&L should come from the trial balance but isnt there. If the opening stock is included in purchases of £2700 then this will make opening stock £500 and purchases £2200. This will reduce your loss by £500 from £3537 to £3037 and increases your reserves to £10763 on the balance sheet. Altenatively opening stock could be £nil. This will have the same effect to reduce loss by £500 to £3037 and increase reserves to £10763. Probably the 2nd scenario is correct in that there isnt any opening stock at the start of the period.
What is my commission for doing your homework/assignment?
In the above where are your opening and closing stock figures coming from?
They do not appear in the original trial balance.
If removed as both opening and closing stock in the P&L and as closing stock in the B/S your figures balance.
The key would therefore seem to be an eroneous £500 closing stock figure in the balance sheet (as the P&L figures cancel each other out).
Happy to rethink my answer in the light of more available information if you have it.
I've reformatted your answers slightly but the figures are the same and in the same places.
Reformatted version of your answer :
As above but with Opening and closing stock removed. (please supply further information from original question if this is not correct).
Kindest regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Snap... ish. I get the answer to £10,263 but your welcome to check my workings.
talk in a bit,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
My feeling is that given is looks like a school assignment or similar that there is £nil opening stock and £500 closing stock which would reduce the loss to £3037 and and increase reserves to £10763.
Looks like the poster has got confused with stock when they were probably told that closing stock was £500 and they have recorded it as both opening and closing stock.
just to fill out the third option per Marks reply in the same format as my answer above (just to complete the set) :
Note that either mine or Marks answer is potentially correct dependant upon the bit that you missed out of the question in relation to stock.
... So I'm after half of Mark's homework commission lol
Where in Thailand are you from?
I used to live in KhonKaen... Well, when not living in the Chareon Thani Princess I actually lived mostly just outside it in the village of Kut Nam Si close to Nam Pong.
talk soon,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I thought about it afterwards and concluded that either of us could be right dependant upon the missing information and my money is coming down more on your side as I'm sure that Biggest didn't just dream up £500.
And here was me thinking it was just clients that only gave us half of the information. lol.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
lol
