Save Mart is a big chain of superstores located in many cities of Pakistan. At December 31, 2017, the Save Mart super store, Islamabad branch reported the inventory amounted to Rs. 25,00,000. During the first two weeks in January 2018, Save Mart made following purchases and sale. These transactions were as follows: 1 Jan, 2018 Purchased Gifts item on account from Metro super store. The Total cost of purchase amounted to Rs.170,000. 3 Jan Purchased Furniture Items form wood world for Rs.500,000 Cash. 4 Jan Sold Grocery items to customers for Rs. 50,000 cash, which had a total cost of Rs. 200,000. 10 Jan Sold Home appliances to ABC store on account for Rs. 350,000. The Cost of home appliances was Rs. 250,000. 11 Jan Paid Rs. 170,000 accounts payable to Metro super store. 13 Jan Collected Rs. 350,000 accounts receivables from ABC store. only these 6 transactions are made in this month. Required: a. Prepare Journal entries to record the transactions; assuming Save Mart uses Periodic inventory system. b. Compute Cost of goods sold (CGS) at the month end under Periodic inventory system. c. Also Pass the Journal entries of Cost of goods sold at the yearend under periodic inventory system.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Save Mart is a big chain of superstores located in many cities of Pakistan. At December 31, 2017, the
Save Mart super store, Islamabad branch reported the inventory amounted to Rs. 25,00,000. During
the first two weeks in January 2018, Save Mart made following purchases and sale.
These transactions were as follows:
1 Jan, 2018 Purchased Gifts item on account from Metro super store. The Total cost of purchase amounted to Rs.170,000.
3 Jan Purchased Furniture Items form wood world for Rs.500,000 Cash.
4 Jan Sold Grocery items to customers for Rs. 50,000 cash, which had a total cost
of Rs. 200,000.
10 Jan Sold Home appliances to ABC store on account for Rs. 350,000. The Cost of home appliances was Rs. 250,000.
11 Jan Paid Rs. 170,000 accounts payable to Metro super store.
13 Jan Collected Rs. 350,000
only these 6 transactions are made in this month.
Required:
a. Prepare
system.
b. Compute Cost of goods sold (CGS) at the month end under Periodic inventory system.
c. Also Pass the Journal entries of Cost of goods sold at the yearend under periodic inventory
system.
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