Question

Alex owns and manages a sports shop (accrual method of accounting is used). On 15 May 20XX Deano (uses the cash method of accounting) paid Alex in advance by cheque for a new rugby ball for $110 as it was signed by the legendary player Lachlan. The rugby ball has a cost of $50. Deano said that he will pick up the ball on 1 October 20XX.

Assuming that you are the accountant for both Deano and Alex, advise them as to their accounting obligations as at 31 May 20XX (hint: your answer should also include the accounts affected).

Answer 1

on which book.............