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Post a Chennai workshop’s supplier invoice
Post journals and a trial balance · Fictional case
The situation
A workshop receives ₹80,000 of resale inventory on credit and pays ₹30,000 before month-end. Opening balances for these movements are zero.
Your task
Post the transactions and show the net ledger movements.
Reveal step-by-step solution
Set up the problem
On receipt, debit inventory ₹80,000 and credit payables ₹80,000.
Work through the numbers
On payment, debit payables and credit cash ₹30,000. Net movement is ₹80,000 debit inventory, ₹50,000 credit payables and ₹30,000 credit cash.
Interpret the result
Debits and credits each total ₹80,000 in the net movements. Verify the inventory classification separately.
What to remember
Test which accounts move, their normal balance and whether the entry belongs in the period.