The Income statement for the year ended 31st December, 1998 and the balance sheet of R Ltd., as on 1st January 1998 are set out below: INCOME STATEMENT FOR THE YEAR ENDED 31ST DEC,1998 $. $. Sales 1,50,000 Cost of goods sold: Opening Stock (FIFO) 30,000 Purchases 60,000 Cost of goods available for sale 90,000 Less: Closing Stock (FIFO) 10,000 80,000 Gross Profit on Sales 70,000 Operating expenses 20,000 Depreciation 10,000 Interest on Loan 5,000 35,000 Retained earnings 35,000 BALANCE SHEET AS ON IST JANUARY, 1998 $ $ Share Capital 1,00,000 Plant and Machinery 1,00,000 Bank Loan 25,000 Stock 30,000 Creditors 35,000 Debtors 18,000 Cash 12,000 1,60,000 1,60,000 Debtors and creditors balances remained constant throughout the year. General price indices were as given below: On the January 1998: 200 Average for the year : 240 On 31st December 1998: 300 You are required to prepare the final accounts for the year 1998 after adjusting price level changes under CPP method.

The Income statement for the year ended 31st December, 1998 and the balance sheet of R Ltd., as on 1st January 1998 are set out below: INCOME STATEMENT FOR THE YEAR ENDED 31ST DEC,1998 $. $. Sales 1,50,000 Cost of goods sold: Opening Stock (FIFO) 30,000 Purchases 60,000 Cost of goods available for sale 90,000 Less: Closing Stock (FIFO) 10,000 80,000 Gross Profit on Sales 70,000 Operating expenses 20,000 Depreciation 10,000 Interest on Loan 5,000 35,000 Retained earnings 35,000 BALANCE SHEET AS ON IST JANUARY, 1998 $ $ Share Capital 1,00,000 Plant and Machinery 1,00,000 Bank Loan 25,000 Stock 30,000 Creditors 35,000 Debtors 18,000 Cash 12,000 1,60,000 1,60,000 Debtors and creditors balances remained constant throughout the year. General price indices were as given below: On the January 1998: 200 Average for the year : 240 On 31st December 1998: 300 You are required to prepare the final accounts for the year 1998 after adjusting price level changes 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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