A trader purchases goods for Rs. 2500000, of these 70% of goods were seld during the year. As the end of 31st December 2009, the market value of such goods were Rs.500000. But the trader recorded in his books for Rs. 750000, Which of the following concept is vinlated? (a) Monzy measurement (b) Conservatism (c) Consistency (d) None of these

A trader purchases goods for Rs. 2500000, of these 70% of goods were seld during the year. As the end of 31st December 2009, the market value of such goods were Rs.500000. But the trader recorded in his books for Rs. 750000, Which of the following concept is vinlated? (a) Monzy measurement (b) Conservatism (c) Consistency (d) None of these

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 13PA: Company Elmira reported the following cost of goods sold but later realized that an error had been...

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Berlin Corp. reported the following data for 2021: Total net sales made to customers were P2,000,000 in cash. Goods purchased for sale totalled P1,200,000 in cash. Beginning and ending inventory of goods for sale, respectively, were P200,000 and P300,000. 1-year advanced rent of P30,000 to apply for 2020 was received from a sublease contract. P40,000 total interest income from customers promissory note earned P30,000 of this was collected. Unrealized foreign exchange gains from foreign currency receivable totaled P60,000. Using cash basis, compute the total income subject to income tax. P990,000 P750,000 P960,000 P690,000 ADD EXPLANATION THANKS
Zain Co. is a registered trader with the VAT Directorate of the Ministry of Finance of Bahrain. Zain Co. is dealing with the products which are standard rated @10%, zero-rated and exempt rated. Manama is supposed to submit VAT returns on quarterly bases. Following are the transactions for 2021. July 10 Purchased 150 units of Item X from Ali @BD 150 each (net) on cash. This item is standard rated at the time of purchase and zero-rated at the time of sales. July 13 Sold 120 units of Item X for BD 200 (net) to Ahmad on credit July 14 Purchased 1000 units of Item A from Rami @BD 200 each (net) on credit. This item is standard-rated supplies at the time of purchases and sales. (credit terms 5/25, n/30) July 16 Sold 200 units of Item A for BD 200 (net) to Hanan on credit. July 26 Sold 200 units of Item A for BD 250 (net) to Ahmad on cash. Trade discount was 5%. July 29 Returned 100 units of item A to Rami. July 31…
also could you please explain why ,cost of goods avarage for sale2020,and cost of goods sold change both of them? Staley Watch Company reported the following income statement data for a 2 year period: 2019 2020 Sales $210,000 $250,000 Cost of Goods Sold Beginning Inventory 32,000 44,000 Cost of Goods Purchased 173,000 202,000 Cost of Goods Available for Sale 205,000 246,000 Less: Ending Inventory 44,000 52,000 Cost of Goods Sold 161,000 194,000 Gross Profit 49,000 56,000 Staley uses periodic inventory system. The inventories at January 1, 2019, and December 31, 2020, are correct. However, the ending inventory at December 31, 2019, was overstated $5,000. Required: Prepare correct income statement data for the two years. What is the cumulative effect of the inventory error on total gross profit for the two years?
Al - Ameen traders have reported annual sales of OMR 15000, Carriage inwards of OMR 1000, Sales discount of OMR 1000 and sales return of OMR 1500. Calculate net sales? a.OMR 12500 b.OMR 15000 c.OMR 11500 d.OMR 10500
For its most recent year a company had Sales (all on credit) of P830,000 and Cost of Goods Sold of P525,000. At the beginning of the year, its Accounts Receivable were P80,000 and its Inventory was P100,000. At the end of the year, its Accounts Receivable were P86,000 and its Inventory was P110,000. Answer the ff: without any explanations, just answer a. The inventory turnover ratio for the year was? b. The accounts receivable turnover for the year was? c. On average how many days of sales were in Accounts Receivable during the year? d. On average how many days of sales were in Inventory during the year?
The following information is available for Grace Company for 2020: Disbursements for purchases P1,050,000; Increase in trade accounts payable 75,000; Decrease in merchandise inventory 30,000; Costs of goods sold for 2010 was P1,155,000. P1,095,000. P945,000.
Company Elmira reported the following cost of goods sold but later realized that an error had been made in ending inventory for year 2021. The correct inventory amount for 2021 was 32,000. Once the error is corrected, (a) how much is the restated cost of goods sold for 2021? and (b) how much is the restated cost of goods sold for 2022?
Selected data for ABC Co. for 2020 are as follows: Decrease in merchandise inventory: P20,000 increase in accounts payable: P50,000 Disbursements for purchases of merchandise: P580,000. How much is the 2020 Cost of goods sold? * P510,000 P550,000 P610,000 P650,000 answer not given
E K Kanoo is registered trader for VAT with NBR of Ministry of Finance of Bahrain. EKK is dealing with the supplies which are standard rated @5%. EKK is supposed to submit VAT returns on quarterly basis. Following are the transactions of 2020. July 10 Purchased goods list price of BD 100,000 from Ahmed. Trade Discount 20%. Credit Term was 1/30, n/60. July 13 Returned goods list price of BD 10,000 to Ahmed. July 14 Purchased Stationery for BD 1000. July 16 Purchased zero rated items for BD 50,000. July 26 Sold goods list price of BD120,000 to Zahra. Trade discount was 10%. Credit Term was 1/30, n/60. August 8 Purchased goods list price of BD 20,000. Input Credit cannot be claimed on it as it was exempt item. Trade discount was 10%. August 29 Sold goods list price of BD 40,000 to Hamdan on cash. Trade Discount was 5%. December31 Sold goods list price of BD 60,000 on credit to Reem. Trade Discount 10%.…
Berlin Corp. reported the following data for 2019: Total net sales made to customers were P2,000,000 in cash. Goods purchased for sale totalled P1,200,000 in cash. Beginning and ending inventory of goods for sale, respectively, were P200,000 and P300,000. 1-year advanced rent of P30,000 to apply for 2020 was received from a sublease contract. P40,000 total interest income from customers promissory note earned P30,000 of this was collected. Unrealized foreign exchange gains from foreign currency receivable totaled P60,000. Using cash basis, compute the total income subject to income tax. P990,000 P750,000 P960,000 P690,000 4. Using accrual basis, compute the total income subject to income tax. P1,060,000 P960,000 P1,000,000 P970,000
Berlin Corp. reported the following data for 2019: Total net sales made to customers were P2,000,000 in cash. Goods purchased for sale totalled P1,200,000 in cash. Beginning and ending inventory of goods for sale, respectively, were P200,000 and P300,000. 1-year advanced rent of P30,000 to apply for 2020 was received from a sublease contract. P40,000 total interest income from customers promissory note earned P30,000 of this was collected. Unrealized foreign exchange gains from foreign currency receivable totaled P60,000. Using accrual basis, compute the total income subject to income tax. P1,060,000 P960,000 P1,000,000 P970,000 ADD EXPLANATION THANKS
New Frontier Limited has completed the following transactions for the month of June 2021: $ 1-Jun-21 Purchases of goods for resale 181,700,000.00 3-Jun-21 Sale of goods 639,400,000.00 4-Jun-21 Sale of phone cards 150,000,000.00 5-Jun-21 Purchases of goods for resale 648,600,000.00 8-Jun-21 Bad Debts written off 193,200,000.00 10-Jun-21 Personal Drawing of goods 28,405,000.00 15-Jun-21 Bad Debts recovered 43,010,000.00 17-Jun-21 Purchases…