Question

Discuss briefly the difference between the perpetual inventory system and the periodic inventory system and how is the amount of inventory determined when the periodic system is used?

Answer 1

Answar- In these system details Inform- -ation of Innentory Purchased Sold are Recorded. Prefetual Inventory System Inventory System Periodic 1 Jo In these system transactions are Recorded with least Information or Sometimes enen no Information is there. e of Computerized tecnology ③ tranaaction are recorded Roughly to Recond Invertory transaction for Just Remembering the data 6 Full Control over the Iment- ③ least Control ows the Innent ory o to, aless Probability leads to No Information about of Lesses Toyes (4) Botos Individual Recordes of Inventory is ascertained at the Irmentory helps to identifing Year end by Physical count B. the rate of at which stock I there is no count throught the is moving. (5 Proper Recording of transaction Proper Records are not Maintalo In Books of Accounts. - ned throught the Year. year plute the Art of Inventory In Penotte system is identified at the year end by combining tex Porang Accounts with Inventory Account no op. Anventory + kiet Porchor Cast of

Note the amount of Inentory in Periodic system is ad identified at the year end boy combining temporary Accounts with Inentory Accounts. opening Invertory = xx (+ Net Purchase = xx Cost of goods availbale nato xxx A Net Sales (xx) Closing Inet. XXX