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U0:47:32 mins Question: 9The adjusting entry for difference betweenthe invoice price and cost price of goods areshown inP&L alcBalance sheetBranch adjustment alsDebtors als0 |
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Answer» usting entry for the DIFFERENCE between the invoice PRICE and COST price of goods are shown in balance sheets.Option (2) is correct.Explanation:In a balance SHEET, entries are made regarding invoice and cost prices of the goods. It is very helpful in keeping the record of a company for future uses. The companies are very careful about entries in the balance sheets as a little mistake can AFFECT the income statement in the sheet. Adjustment entries are also significant in the preparation of a balance sheet. |
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