IGCSE · Accountancy · Chapter 13

Ch 13 Valuation of Inventory: complete notes

Neat, exam-ready notebook-style notes for Ch 13 Valuation of Inventory, following the Cambridge IGCSE 0452 syllabus. This chapter is part of the complete IGCSE Accounting 0452 Complete Notes: All 22 Chapters with Full Layouts and Mark Schemes (Cambridge 2027–2029).

Free preview: Ch 13 Valuation of Inventory notes

A quick look at the chapter from our IGCSE Accountancy notes. The full chapter notes have the detailed explanations, diagrams and practice questions with answers.

Topics in this chapter

1. 13.1 The lower of cost and net realisable value
2. Why the lower of the two?
3. Why NRV may fall below cost
4. 13.2 Calculating the value of inventory
5. When the inventory is not counted on the last day of the year
6. 13.3 The effect of an incorrect valuation of inventory

“I can” checklist: what you must be able to do

• state the lower of cost and NRV rule
• work out cost and NRV for an item
• give reasons why NRV may fall below cost
• prepare an item-by-item valuation table
• adjust a count to the year-end date
• convert sales to cost with mark-up or margin
• show closing inventory in the trading section
• state the effects of an inventory error
• calculate a corrected profit
• explain the concepts behind the rule

What is inside the full chapter notes

• Concept notes, model layouts (valuation table, adjusted inventory count, trading section, corrected profit), 8 worked examples
• Exam skills for Paper 2; common mistakes from the examiner report
• 20 Paper 1 style multiple-choice questions, explained
• Two Paper 2 style questions (20 marks each) with full mark schemes and answer layouts
• Quick-reference table, "I can" checklist

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What you get in the pack

• All 22 chapters of the Cambridge IGCSE Accounting 0452 syllabus (exams 2027–2029): the accounting equation, double entry, business documents, books of prime entry, the trial balance, correction of errors, bank reconciliation, control accounts, depreciation, accruals and prepayments, irrecoverable debts, inventory, financial statements of sole traders, partnerships, limited companies, manufacturers and clubs, incomplete records, ratios and accounting concepts
• Every syllabus statement covered in order, with clear notes and complete accounting layouts drawn for these notes
• Worked examples with full layouts, exam skills and key definitions in every chapter
• Common mistakes taken from Cambridge examiner reports, so you know where marks are lost
• 20 Paper 1 style MCQs per chapter with answers and explanations
• Original exam-style questions in the style of Paper 1 (multiple choice) and Paper 2 (structured written paper), with full mark schemes (no past-paper reprints)
• Quick-reference sheet and an "I can" checklist at the end of every chapter
• Colour PDF and a black and white copy of every chapter for printing
• Independent notes; not endorsed by or affiliated with Cambridge University Press & Assessment

All chapters in this pack

1. Ch 1 The Purpose of Accounting and the Accounting Equation
2. Ch 2 The Double Entry System of Book-keeping
3. Ch 3 Business Documents
4. Ch 4 Books of Prime Entry
5. Ch 5 The Trial Balance
6. Ch 6 Correction of Errors
7. Ch 7 Bank Reconciliation
8. Ch 8 Control Accounts
9. Ch 9 Capital and Revenue Expenditure and Receipts
10. Ch 10 Depreciation and Disposal of Non-current Assets
11. Ch 11 Other Payables and Other Receivables
12. Ch 12 Irrecoverable Debts and Allowance for Irrecoverable Debts
13. Ch 13 Valuation of Inventory
14. Ch 14 Financial Statements of Sole Traders
15. Ch 15 Partnerships
16. Ch 16 Limited Companies
17. Ch 17 Manufacturing Accounts
18. Ch 18 Clubs and Societies
19. Ch 19 Incomplete Records
20. Ch 20 Accounting Ratios: Calculation and Interpretation
21. Ch 21 Inter-business Comparison, Interested Parties and Limitations
22. Ch 22 Accounting Concepts, Ethics, Technology and Sustainability