The Income Statement for the year ended 31st December, 2020 under the method of Historical Cost Accounting of Sohar LLC is as follows. Particulars OMR Sales 500,000 Less: Cost of Goods Sold. Opening Stock (FIFO) 30,000 + Purchases 355,000 385,000 - Closing Stock 35,000 350,000 Gross Profit 150,000 - Operating Expenses 77,000 - Interest on Debentures 5,000 - Depreciation on Machinery 22,500 - Depreciation on Furniture 2,000 106,500 Net Profit 43,500 The general price index on 1st January, 2020 was 300 and on 31st December,2020 was 360. What is the amount of Cost of Goods Sold as per CPP Method? What is the amount of Gross Profit as per CPP Method? What is the amount of Net Profit as per CPP Method?
The Income Statement for the year ended 31st December, 2020 under the method of Historical Cost Accounting of Sohar LLC is as follows. Particulars OMR Sales 500,000 Less: Cost of Goods Sold. Opening Stock (FIFO) 30,000 + Purchases 355,000 385,000 - Closing Stock 35,000 350,000 Gross Profit 150,000 - Operating Expenses 77,000 - Interest on Debentures 5,000 - Depreciation on Machinery 22,500 - Depreciation on Furniture 2,000 106,500 Net Profit 43,500 The general price index on 1st January, 2020 was 300 and on 31st December,2020 was 360. What is the amount of Cost of Goods Sold as per CPP Method? What is the amount of Gross Profit as per CPP Method? What is the amount of Net Profit as per CPP Method?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Income Statement for the year ended 31st December, 2020 under the method of Historical Cost Accounting of Sohar LLC is as follows.
Particulars
OMR
Sales
500,000
Less: Cost of Goods Sold.
Opening Stock (FIFO)
30,000
+ Purchases
355,000
385,000
- Closing Stock
35,000
350,000
Gross Profit
150,000
- Operating Expenses
77,000
- Interest on Debentures
5,000
- Depreciation on Machinery
22,500
- Depreciation on Furniture
2,000
106,500
Net Profit
43,500
The general price index on 1st January, 2020 was 300 and on 31st December,2020 was 360.
What is the amount of Cost of Goods Sold as per CPP Method?
What is the amount of Gross Profit as per CPP Method?
What is the amount of Net Profit as per CPP Method?
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