Im the context of Imflation Accoumitimg System adjust the ffollowing Statement of ufit und LOSS and Balance Sheet under the "Current Purchasing Power' (or CPP) method to ascertain fhe dhanges in Net Profit and Reserve. STATEMENT OF PROFIT AND LOSS ffor the year ended 31st December, 2015 $ (000) 500 Sales 80 Opening Stock Purchases 420 500 70 430 Less : Closing Stock 70 Gross Profit Depreciation (buildings) Admünistration 25 30 40 Net Profit BALANCE SHEET as at 31st December, 2015 $ ('000) 200 Share Capital Reserve 200 400 Land 140 200 Building Less : Depreciation 45 155 Stock Debtors Cash 70 40 30 140 Less: Creditors 35 105 400 Following data are given : (1) Closing stock was acquired during last quarter of 2015 and opening stock during the last quarter of 2014. (2) The land and buildings were acquired and the capital issued during 1992. The buildimgs are depreciated straight lime over 40 years. (3) The relevant retail price indices are (a) 2007 average (b) 2014 last quarter average (c) 2014 December 31l 60 (d) 2015 last quarter average 108 (e) 2015 average 110 (f) 2015 December 31 116 114 18 ((4) Sales, Purchases and Administration eXpenses are assumed to occur evenly over the year and hence at average prices.
Im the context of Imflation Accoumitimg System adjust the ffollowing Statement of ufit und LOSS and Balance Sheet under the "Current Purchasing Power' (or CPP) method to ascertain fhe dhanges in Net Profit and Reserve. STATEMENT OF PROFIT AND LOSS ffor the year ended 31st December, 2015 $ (000) 500 Sales 80 Opening Stock Purchases 420 500 70 430 Less : Closing Stock 70 Gross Profit Depreciation (buildings) Admünistration 25 30 40 Net Profit BALANCE SHEET as at 31st December, 2015 $ ('000) 200 Share Capital Reserve 200 400 Land 140 200 Building Less : Depreciation 45 155 Stock Debtors Cash 70 40 30 140 Less: Creditors 35 105 400 Following data are given : (1) Closing stock was acquired during last quarter of 2015 and opening stock during the last quarter of 2014. (2) The land and buildings were acquired and the capital issued during 1992. The buildimgs are depreciated straight lime over 40 years. (3) The relevant retail price indices are (a) 2007 average (b) 2014 last quarter average (c) 2014 December 31l 60 (d) 2015 last quarter average 108 (e) 2015 average 110 (f) 2015 December 31 116 114 18 ((4) Sales, Purchases and Administration eXpenses are assumed to occur evenly over the year and hence at average prices.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Im the context of Imfilation Accountimg System adjust the ffollowing Statement of
Pudfit und LOES and Balance Sheet under the "Current Purchasing Power' (or CPP) method tto ascertain fhe
changes in Net Profit and Reserve.
STATEMENT OF PROFIT AND LOSS
ffor the year ended 31st December, 2015
$ ('000)
500
Sales
80
Opening Stock
Purchases
420
500
70
430
Less : Closing Stock
70
Gross Profit
Depreciation (buildings)
Admünüstration
25
30
40
Net Profit
BALANCE SHEET
as at 31st December, 2015
$ ('O00)
Share Capital
200
Reserve
200
400
Land
140
200
Building
Less : Depreciation
45
155
Stock
Debtors
70
40
Cash
30
140
Less : Creditors
35
105
400
Following data are given :
(1) Closing stock was acquired during last quarter of 2015 and opening stock during the last quarter of
2014.
(2) The land and buildings were acquired and the capital issued during 1992. The buildings are
depreciated straight lime over 40 years.
((3) The relevant retail price indices are
(@) 2007 average
(b) 2014 last quarter average
(c) 2014 December 31
60 (d) 2015 last quarter average
108 (e) 2015 average
110 (f) 2015 December 31
114
18
((4) Sales, Purchases and Administration eXpenses are assumed to occur evenly over the year and hence
at average prices.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F63ed40d6-b107-43d6-b616-c12505b35859%2Fe7da9b0b-55fa-41be-bc46-a5713a1ab4b5%2Ffzgv45o_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Im the context of Imfilation Accountimg System adjust the ffollowing Statement of
Pudfit und LOES and Balance Sheet under the "Current Purchasing Power' (or CPP) method tto ascertain fhe
changes in Net Profit and Reserve.
STATEMENT OF PROFIT AND LOSS
ffor the year ended 31st December, 2015
$ ('000)
500
Sales
80
Opening Stock
Purchases
420
500
70
430
Less : Closing Stock
70
Gross Profit
Depreciation (buildings)
Admünüstration
25
30
40
Net Profit
BALANCE SHEET
as at 31st December, 2015
$ ('O00)
Share Capital
200
Reserve
200
400
Land
140
200
Building
Less : Depreciation
45
155
Stock
Debtors
70
40
Cash
30
140
Less : Creditors
35
105
400
Following data are given :
(1) Closing stock was acquired during last quarter of 2015 and opening stock during the last quarter of
2014.
(2) The land and buildings were acquired and the capital issued during 1992. The buildings are
depreciated straight lime over 40 years.
((3) The relevant retail price indices are
(@) 2007 average
(b) 2014 last quarter average
(c) 2014 December 31
60 (d) 2015 last quarter average
108 (e) 2015 average
110 (f) 2015 December 31
114
18
((4) Sales, Purchases and Administration eXpenses are assumed to occur evenly over the year and hence
at average prices.
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