I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

overdrawn. 

6 

C 

As no entries have been made at all, the trial balance will still balance. 

 

 

 

 

 

 

Now try ... 

 

Attempt the questions below from the Practice Question Bank 

 

Qs 20 – 24 

 

 

 

 

 

 

 

 

 

 

 

 

 

ANSWERS TO QUICK QUIZ 

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105 

 

 

Recording transactions and events

part

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PART D: RECORDING TRANSACTIONS AND EVENTS 

 

106

 

 

 

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107 

C H A P T E R 

 

 

TOPIC LIST 

SYLLABUS 

REFERENCE 

1  Cost of goods sold 

D3(a)

2  Accounting for opening and closing inventories 

D3(a),(b)

3 Counting 

inventories 

D3(f)

4 Valuing 

inventories 

D3(c),(g),(i)

5 IAS 

2 

Inventories

 

D3(d),(e),(h), F3(b)

 

Inventory

Inventory is one of the most important assets in a company's 

statement of financial position. As we will see, it also affects the 

statement of profit or loss, having a direct impact on gross profit.

So far you have come across inventories in the preparation of a 

simple statement of financial position. Here we will look at 

inventories in the calculation of the cost of goods sold. This 

chapter also explores the difficulties of valuing inventories. 

This is the first time that you will be required to consider the 

impact of the relevant IFRS on the valuation and presentation of 

an item in the accounts: IAS 2 Inventories. 

 

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