Question

U0:47:32 mins
Question: 9
The adjusting entry for difference between
the invoice price and cost price of goods are
shown in
P&L alc
Balance sheet
Branch adjustment als
Debtors als
0​

Answer 1

The adjusting 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.