Question: Max Ltd received inventory valued at 5000 on Dec 25, 2020. The company has already paid 3000. The balance is to be paid next month.

Max Ltd received inventory valued at 5000 on Dec 25, 2020. The company has already paid 3000. The balance is to be paid next month. In the books of account as on Dec 31, 2020, which amount should be recorded as inventory. Explain your answer with the relevant accounting concept/ principle.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Hello! I am stuck and need help creating the proper charts as listed under required 1-10. I already have all of the numbers but im not sure how to set them up the way the assignment is asking me to....

Make the changed to the Accounting Log for the Utah Valley Lumber Company Accounting 2010 Section 08 Final Problem Set UTAH VALLEY LUMBER COMPANY MONTH OF OCTOBER Oct 4 On this day an entrepreneur...

Prepare Journal Employees Fast Pedallin Pty Ltd employs two casual assistants. Tina Bobbysox as a sales person, and Rick Disneck works in the warehouse filling orders. Each employee works between 30...

please help me do rhe jounral entries from 10-1 to 12-31. when i did it i went onto the trial balance my numbers werent adding up. 10-1-20 Scott Blout invested $100,000 Cash to start Master Flow...

Princiles of financial accounting AutoSave Off Have Midterm Excel Template A - Protected View Search Adam A > 0 x File Home Insert Page Layout Formulas Data Review View Help Share Comments O...

Tally ERP 9 we have to enter all those in tally software i need you r help as soon as possible if iyou answered this question send the file through my email send your email so i can send the file...

GROUP SEVEN The following trial balance was extracted from the books of Marcus Ltd for the year ending 31st December 2020 . Salesmen's salaries Salesmen's commission Carriage inwards Returns inwards...

Try It3-1.xlsx Analysis Journal Entry Sheet3 T Account Update Try It! Given the following accounts and transaction information, complete a transaction analysis chart and journal entry for Logan Co:...

Serial Problem The following information applied to the indisplayed beb! Santana Rey created Business Solutions on October 1, 2018. The company has been costul and to ist of customers has grown To...

eBook Show Me How Asset turnover ratio Financial statement data for years ended December 31, 2013 and 2012, for Edison Company follow: Sales 2013 $1,760,000 2012 $1,449,000 Total assets: Beginning of...

An eight-volume set of reference books is kept on a shelf. The books are used frequently and put back in random order. a. How many ways can the eight books be arranged on the shelf? b. How many ways...

Test the null hypothesis that the true population average body weight is the same for two independent diagnosis groups from one hospital versus the alternative hypothesis that these two population...

When a supplier is not financially sound, a recommendation must always be provided to mitigate the identified risk. True or False?

Hugo decides to buy his Christmas gifts on Black Friday. To simplify his life, he is giving his 10 closest friends scarves for Christmas and everyone else Christmas cards. Hugo is willing to pay up...