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SingaporeAccounting

Inventory and Bank Reconciliation

3 dot points across 3 inquiry questions. Click any dot point for a focused answer with worked past exam questions where available.

At what amount do we value the goods left unsold at the year end?

Value closing inventory at the lower of cost and net realisable value
A simple answer to the N(A)-Level Principles of Accounts outcome on inventory valuation. The lower of cost and net realisable value rule, why prudence requires it, and how the valuation affects profit.
8 min answer →

Why does our cash book balance differ from the bank statement, and how do we reconcile them?

Prepare a bank reconciliation statement using unpresented cheques and uncredited deposits
A simple answer to the N(A)-Level Principles of Accounts outcome on bank reconciliation. Why timing differences arise, how unpresented cheques and uncredited deposits are handled, and how to reconcile the cash book to the bank statement.
9 min answer →

Which bank statement items must we add to our own cash book before we reconcile?

Update the cash book for items appearing on the bank statement but not yet in the cash book
A simple answer to the N(A)-Level Principles of Accounts outcome on updating the cash book. The items found on the bank statement first (direct debits, standing orders, bank charges, interest, dishonoured cheques) and how to bring the cash book up to date.
8 min answer →