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VICAccountingQuick questions
Unit 3: Financial accounting for a trading business
Quick questions on Source documents for a trading business (VCE Accounting Unit 3)
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 the documents?Show answer
A business has three documents for 1 July. A purchase invoice from a supplier for inventory of 1,000 dollars plus 100 dollars GST. A receipt issued for a cash sale of 660 dollars including 60 dollars GST, where the inventory sold cost 300 dollars. A memo recording the owner taking inventory costing 150 dollars for personal use.
What are cash sale receipt entries?Show answer
Debit Bank 660, Credit Sales 600, Credit GST Clearing 60. Then Debit Cost of Sales 300, Credit Inventory 300. The receipt evidences cash in; the inventory card evidences the cost.
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