During the year to 31 October 20X1, car fuel bills of £8,540 were paid. A delivery worth £130 had yet to be invoiced. Car fuel in inventory at 1 November 2003 was £1,250 and there were invoices awaited for £170. At 31 October 20X1, the inventory of car fuel was valued at £980. The car fuel to be charged to the income statement account for the year to 31 October 20X1 is:

Question

Quizplus · Accepted Answer

To calculate the car fuel to be charged to the income statement, we start with the total paid (£8,540), add the delivery not yet invoiced (£130), subtract the inventory at the start of the period (£1,250), and add the inventory at the end of the period (£980). This gives us £8,540 + £130 - £1,250 + £980 = £8,400. However, the correct calculation should also consider the invoices awaited at the start (£170), which were not initially included in the calculation provided. The correct calculation is £8,540 + £130 - (£1,250 - £170) + £980 = £8,770.

During the Year to 31 October 20X1, Car Fuel Bills