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Cream Ltd commenced trading on 1 January 2023. The purchases and sales for the year have been as follows: Purchases Sales January 6,200 at Rs3.00 each February March June 4,100 at Rs 3.10 each 3,400 at Rs4.20 each 2,100 at Rs3.15 each July 5,200 at Rs 4.15 each September 3,100 at Rs3.20 each October 1,100 at Rs3.50 each November 4,200 at Rs4.40 each December 1,500 at Rs4.60 each On 1 January 2023, Cream Ltd raised share capital of Rs50,000 and five-year loans of Rs45,000. During the year all purchases and sales were on cash terms, and expenses of Rs11,400 were also paid in cash. REQUIRED: Prepare an Income statement for the year ended 31 December 2023 using: i. The FIFO (first-in-first-out) method of inventory valuation ( ii. The AVCO method of inventory valuation

Cream Ltd commenced trading on 1 January 2023. The purchases and sales for the year have been as follows: Purchases Sales January 6,200 at Rs3.00 each February March June 4,100 at Rs 3.10 each 3,400 at Rs4.20 each 2,100 at Rs3.15 each July 5,200 at Rs 4.15 each September 3,100 at Rs3.20 each October 1,100 at Rs3.50 each November 4,200 at Rs4.40 each December 1,500 at Rs4.60 each On 1 January 2023, Cream Ltd raised share capital of Rs50,000 and five-year loans of Rs45,000. During the year all purchases and sales were on cash terms, and expenses of Rs11,400 were also paid in cash. REQUIRED: Prepare an Income statement for the year ended 31 December 2023 using: i. The FIFO (first-in-first-out) method of inventory valuation ( ii. The AVCO method of inventory valuation

FINANCIAL ACCOUNTING
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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Cream Ltd commenced trading on 1 January 2023. The purchases and sales for the year have been as follows: Purchases Sales January 6,200 at Rs3.00 each February March June 4,100 at Rs 3.10 each 3,400 at Rs4.20 each 2,100 at Rs3.15 each July 5,200 at Rs 4.15 each September 3,100 at Rs3.20 each October 1,100 at Rs3.50 each November 4,200 at Rs4.40 each December 1,500 at Rs4.60 each On 1 January 2023, Cream Ltd raised share capital of Rs50,000 and five-year loans of Rs45,000. During the year all purchases and sales were on cash terms, and expenses of Rs11,400 were also paid in cash. REQUIRED: Prepare an Income statement for the year ended 31 December 2023 using: i. The FIFO (first-in-first-out) method of inventory valuation ( ii. The AVCO method of inventory valuation
Transcribed Image Text:Cream Ltd commenced trading on 1 January 2023. The purchases and sales for the year have been as follows: Purchases Sales January 6,200 at Rs3.00 each February March June 4,100 at Rs 3.10 each 3,400 at Rs4.20 each 2,100 at Rs3.15 each July 5,200 at Rs 4.15 each September 3,100 at Rs3.20 each October 1,100 at Rs3.50 each November 4,200 at Rs4.40 each December 1,500 at Rs4.60 each On 1 January 2023, Cream Ltd raised share capital of Rs50,000 and five-year loans of Rs45,000. During the year all purchases and sales were on cash terms, and expenses of Rs11,400 were also paid in cash. REQUIRED: Prepare an Income statement for the year ended 31 December 2023 using: i. The FIFO (first-in-first-out) method of inventory valuation ( ii. The AVCO method of inventory valuation
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