FILL THE BLANK. This exercise is to make sure you understand how to record buying and selling of inventory, and the recording of GST (10%) in each transaction.
The business is called Joshi Mercedes.
The system for recording inventory transactions is the perpetual system.
The business is a Mercedes car dealership in Bathinda, Punjab.
Amounts include GST unless otherwise stated.
The following diagram explains the terms for who pays freight on buying purchases in.
FOB terms determine who pays the freight:
seller ----------------> Buyer seller-------------------> Buyer
buyer owns the good seller owns the good
buyers owns the freight seller owns the freight