the confuzing part

[Lemollin]

So whats the concept behind this "stock gain" theory?

Apparently i put Credit Sales (Understated) and Cost of Sales (Understated), i understand that its a 3 marks question, but in a credit sales, stock gain isnt involved right?

[Flaming_Arrow]

just imagine i had 1000 left in the strock control account, i made a credit sale with cost of sales 200 but didnt record in my stock card it would say 1000 but i actually have 800 left, so when i do a physical stocktake it would say stock loss. but the trial balance had a stock gain which would mean its understated due to fact its actually a stock loss which would increase stock gain.

i hope that makes sense

[nbalakers24]

that makes perfect sense

damn lost the marks

[monokekie]

but i thought this way,

you did a stock count with 800 stock on hand, stock card says 400, there are 400 stock gain.

(but if a credit sale of stock cost 100 is omitted, stock becomes overstated.)

so, the stock should be 300, stock gain should be 500.

stock gain should be 500, but only recorded as 400, isn't it understated?

[phanphy]

Actually yeah, stock gain.
Explains why it was 3 marks

[phanphy]

Hey, $20000 or 0 for bank balance (For CFS)?

[Flaming_Arrow]

Hey, $20000 or 0 for bank balance (For CFS)?

i duno i wrote $20 000 but i think it should be 0

[nbalakers24]

Hey, $20000 or 0 for bank balance (For CFS)?

i duno i wrote $20 000 but i think it should be 0

same

[Flaming_Arrow]

but i thought this way,

you did a stock count with 800 stock on hand, stock card says 400, there are 400 stock gain.

(but if a credit sale of stock cost 100 is omitted, stock becomes overstated.)

so, the stock should be 300, stock gain should be 500.

stock gain should be 500, but only recorded as 400, isn't it understated?

yer i agree with you actually, it should be understated

[mtwtfss]

fmllll

[turley]

im quite sure bank balance is zero. think about it, the business starts with $0. also the $20000 contribution is included in the $30000 sundries

[turley]

it is stock gain.

let consider this fact - what possible two entries can fit in revenues?
we accept credit sales (or sales) is one. net profit, gross profit and adjusted gross profit dont belong (ie. the are revs - exps)
logically stock gain is the only one the fits, unless you want to try your luck as discount rev..

[mtwtfss]

im quite sure bank balance is zero. think about it, the business starts with $0. also the $20000 contribution is included in the $30000 sundries

Hm..but if they contribute 20,000 on 1/1, bank balance on the 1/1 = 20,000

CFS asks for the balance as at 1/1, which is 20,000

thats what i hope it is anyway!

[mtwtfss]

Any guesses at the A+ cut off?

[monokekie]

82/90