3) a) Shahi Foods & Spices Company purchased goods for OMR 25,000 and sold 70% of suchgoods during the accounting year ended on 31-12-2019. The market value of remaining goodswas OMR 5,000. The company valued the closing inventory at OMR 5,000 and not at OMR 7,500.Is there any violation of accounting concept/convention by Shahi Foods & Spices Company?Justify your answer.b) Sky Jewelers Muscat received an order to supply gold ornaments worth OMR 50,000. Theysupplied ornaments worth OMR 30,000 up to the year ending 31st December 2020 and rest of theornaments worth OMR 20,000 were supplied in January 2021. Which accountingconcept/convention must be followed by Sky Jewelers while recording this transaction? Discuss.

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a) Shahi Foods & Spices Company purchased goods for OMR 25,000 and sold 70% of such goods during the accounting year ended on 31-12-2019. The market value of remaining goods was OMR 5,000. The company valued the closing inventory at OMR 5,000 and not at OMR 7,500. Is there any violation of accounting concept/convention by Shahi Foods & Spices Company? Justify your answer.

a) Shahi Foods & Spices Company purchased goods for OMR 25,000 and sold 70% of such goods during the accounting year ended on 31-12-2019. The market value of remaining goods was OMR 5,000. The company valued the closing inventory at OMR 5,000 and not at OMR 7,500. Is there any violation of accounting concept/convention by Shahi Foods & Spices Company? Justify your answer.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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