Hi,

I just wanted to know the Accounting entries for Puchase of Inventory(CellPhones)

Example: take a Item as "CellPhone" each costs 1000/- from xyz ltd
i.e 10 x1000= 10,000

1. While we puchase the Material - CellPhones

Purchase of A/c Dr. 10,000
To xyz ltd a/c 10,000



Impact in Trading Account , Profit and Loss A/c, Balance Sheet and Trial Balance

Can you explain it... please

Thanks
E.Koteswara Rao

The purchase of cell phones will be treated as an inventory until sold. At the end of a period, you will determine the cost of unsold items and calculate ending inventory, deduct it from purchases to determine cost of goods sold.