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TASAccountingQuick questions

Financial Accounting

Quick questions on Perpetual Inventory Recording - TCE Accounting (Tasmania)

2short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What are recording purchases?
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When goods are bought for resale, the cost goes straight into the asset account Inventory, not a Purchases account. A credit purchase of stock is recorded as debit Inventory, debit GST clearing, and credit Creditors Control for the total.
What is recording a sale?
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Because the system tracks both the sale and the cost at the moment of sale, every sale has two parts.

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