Inventory Transactions

Question 1

Bought goods worth $100 for resale on credit from Sia Choon Trading.

Answer 1

DR Inventory $100

CR Trade payable - Sia Choon Trading $100

Question 2

Issued a cheque of $200 for goods bought from Karen, a supplier.

Answer 2

DR Inventory $200

CR Cash at bank $200

Question 3

Paid $300 cash for goods bought from a street-side vendor.

Answer 3

DR Inventory $300

CR Cash in hand $300

Question 4

Owner withdrew goods worth $80 for own use.

Answer 4

DR Drawings $80

CR Inventory $80

Question 5

Owner paid for purchase of goods costing $400 using his personal cheque.

Answer 5

DR Inventory $400

CR Capital $400

Question 6

Sold goods for cash $1,300. These goods cost $700.

Answer 6

DR Cash in hand $1,300
CR Sales revenue $1,300

DR Cost of sales $700
CR Inventory $700

Question 7

Sold goods on credit to Kimly Corp. for $2,600. These goods cost $1,200.

Answer 7

DR Trade receivable - Kimly Corp. $2,600
CR Sales revenue $2,600

DR Cost of sales $1,200
CR Inventory $1,200

Question 8

Received a cheque for $800 from selling goods to Justyn. These goods cost $390.

Answer 8

DR Cash at bank $800
CR Sales revenue $800

DR Cost of sales $390
CR Inventory $390

Question 9

Returned goods costing $20 previously bought on credit from Sia Choon Trading.

Answer 9

DR Trade payable - Sia Choon Trading $20

CR Inventory $20

Question 10

Goods previously sold on credit to Kimly Corp. for $600 were returned to the business. These goods cost $410.

Answer 10

DR Sales returns $600
CR Trade receivable - Sia Choon Trading $600

DR Inventory $410
CR Cost of sales $410