ou are required to adjust the same for price level changes under CPP method.
Vijayan Ltd. furnishes the following income statement for the year ending 31st December 2007, prepared on the basis of conventional accounting. You are required to adjust the same for price level changes under CPP method.
|
Particulars |
Rs. |
Rs. |
|
Sales Less: Cost of goods sold: Opening Inventory Add: Purchases
Less: Closing Inventory Add: Expenses Wages and Salaries Other Expenses
Net Income Dividends |
8,000 60,000 68,000 6,000 62,000 6,000 4,000 500 500
|
90000
73,000 17,000 5,000 12,000 |
Additional information: General Price Index as of 1st Jan 2007: 100; 31st March 2011: 200; Average Index for the year: 150.Interest and dividend are paid on Dec.31. Building was purchased when the index was 50.
(OR)
2B. The following data are available from the books of M/s Salin Ltd as on 31st March 2003
|
Particulars |
1st April 2002 |
31st March 2003 |
|
Cash |
3500 |
5500 |
|
Book Debts |
25000 |
30000 |
|
Creditors |
18000 |
21000 |
|
Loan |
40000 |
40000 |
You are required to work out the net monetary result of the company as at 31st March 2003,
Considering the following retail price index number.
1st April 2002: 240;
31st March 2003: 360;
Average Index for the year: 300
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