The following information relating to Mazoon LLC, for the year ended 31st December 2020 is provided to youand you are requested to calculate sales for the year ending 2020 under CPP method.DetailsOMRNet monetary assets on 1st January 20205,000Net monetary assets as on 31st December 202035,000Transactions for the year are as given belowCash Sales40,000Credit Sales50,000Credit Purchases35,000Wages10,000Other operating expenses5,000Interest paid10,000General Price Index on 1st January 2020 = 100General Price Index on 31st December 2020 = 150Average Index for the year 2020 = 125

Sales occurs throughout the year. Therefore, to calculate sales under CPP method, average conversion…

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Business

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calculate sales for the year ending 2020 under CPP method.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The following information relating to Mazoon LLC, for the year ended 31st December 2020 is provided to you
and you are requested to calculate sales for the year ending 2020 under CPP method.
Details
OMR
Net monetary assets on 1st January 2020
5,000
Net monetary assets as on 31st December 2020
35,000
Transactions for the year are as given below
Cash Sales
40,000
Credit Sales
50,000
Credit Purchases
35,000
Wages
10,000
Other operating expenses
5,000
Interest paid
10,000
General Price Index on 1st January 2020 = 100
General Price Index on 31st December 2020 = 150
Average Index for the year 2020 = 125

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