Im the context of Imfilation Accountimg System adjust the ffollowing Statement ofPudfit und LOES and Balance Sheet under the "Current Purchasing Power' (or CPP) method tto ascertain fhechanges in Net Profit and Reserve.STATEMENT OF PROFIT AND LOSSffor the year ended 31st December, 2015$ ('000)500Sales80Opening StockPurchases42050070430Less : Closing Stock70Gross ProfitDepreciation (buildings)Admünüstration253040Net ProfitBALANCE SHEETas at 31st December, 2015$ ('O00)Share Capital200Reserve200400Land140200BuildingLess : Depreciation45155StockDebtors7040Cash30140Less : Creditors35105400Following data are given :(1) Closing stock was acquired during last quarter of 2015 and opening stock during the last quarter of2014.(2) The land and buildings were acquired and the capital issued during 1992. The buildings aredepreciated straight lime over 40 years.((3) The relevant retail price indices are(@) 2007 average(b) 2014 last quarter average(c) 2014 December 3160 (d) 2015 last quarter average108 (e) 2015 average110 (f) 2015 December 3111418((4) Sales, Purchases and Administration eXpenses are assumed to occur evenly over the year and henceat average prices.

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Im the context of Imflation Accoumitimg System adjust the ffollowing Statement of ufit und LOSS and Balance Sheet under the "Current Purchasing Power' (or CPP) method to ascertain fhe dhanges in Net Profit and Reserve. STATEMENT OF PROFIT AND LOSS ffor the year ended 31st December, 2015 $ (000) 500 Sales 80 Opening Stock Purchases 420 500 70 430 Less : Closing Stock 70 Gross Profit Depreciation (buildings) Admünistration 25 30 40 Net Profit BALANCE SHEET as at 31st December, 2015 $ ('000) 200 Share Capital Reserve 200 400 Land 140 200 Building Less : Depreciation 45 155 Stock Debtors Cash 70 40 30 140 Less: Creditors 35 105 400 Following data are given : (1) Closing stock was acquired during last quarter of 2015 and opening stock during the last quarter of 2014. (2) The land and buildings were acquired and the capital issued during 1992. The buildimgs are depreciated straight lime over 40 years. (3) The relevant retail price indices are (a) 2007 average (b) 2014 last quarter average (c) 2014 December 31l 60 (d) 2015 last quarter average 108 (e) 2015 average 110 (f) 2015 December 31 116 114 18 ((4) Sales, Purchases and Administration eXpenses are assumed to occur evenly over the year and hence at average prices.

Im the context of Imflation Accoumitimg System adjust the ffollowing Statement of ufit und LOSS and Balance Sheet under the "Current Purchasing Power' (or CPP) method to ascertain fhe dhanges in Net Profit and Reserve. STATEMENT OF PROFIT AND LOSS ffor the year ended 31st December, 2015 $ (000) 500 Sales 80 Opening Stock Purchases 420 500 70 430 Less : Closing Stock 70 Gross Profit Depreciation (buildings) Admünistration 25 30 40 Net Profit BALANCE SHEET as at 31st December, 2015 $ ('000) 200 Share Capital Reserve 200 400 Land 140 200 Building Less : Depreciation 45 155 Stock Debtors Cash 70 40 30 140 Less: Creditors 35 105 400 Following data are given : (1) Closing stock was acquired during last quarter of 2015 and opening stock during the last quarter of 2014. (2) The land and buildings were acquired and the capital issued during 1992. The buildimgs are depreciated straight lime over 40 years. (3) The relevant retail price indices are (a) 2007 average (b) 2014 last quarter average (c) 2014 December 31l 60 (d) 2015 last quarter average 108 (e) 2015 average 110 (f) 2015 December 31 116 114 18 ((4) Sales, Purchases and Administration eXpenses are assumed to occur evenly over the year and hence at average prices.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 16E

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