FINANCIAL ACCOUNTING II ASSINMENT

1. Using the information provided by John Doe, we can compute the value of closing inventory,
on the three inventory valuation methods discussed:
based
Date Purchases Date Sales
1-Aug 120 units @ $120 6-Aug 100 units @ $140
8-Aug 50 units @ $125 10-Aug 55 units @ $145
2. Basic problem –16-Aug Journal entries, P/L 25-Aug
20 units @ $140
Appropriation A/c and Partners’ Capital A/c
40 units @ $160
Partners A and B20-Aug 30 units @ $150
decided to appropriate profits of the firm on the following terms:

(a) Interest is payable on Capital at 5% p.a.

(b) Both A and B will get remuneration at `2,000 and `1,000 per month respectively.

(c) Interest is payable on loan contributed by A at 6% p.a. (A contributed loan of `20,000 to the
firm on July 1, 2017).

(d) Interest on Drawings of partners is 4% p.a. (Drawings of A and B during 2017 were `6,000
and `4,000 respectively).

(e) Profit sharing ratio between A and B is 3:2.

For the year ending on Dec. 31, 2017 the total net profit of the firm is shown at `70,000. On Jan.
1, 2017, the Capital balances of A and B were `50,000 and `40,000 respectively. In the firm’s
books show the Journal entries, P/L Appropriation A/c and Capital A/c.

3. The received side of the Stores Ledger Account shows the following particulars:

Jan. 1 Opening Balance: 500 units @ Br.4

Jan. 5 Received from vendor: 200 units @ Br. 4.25

Jan.12 Received from vendor 150 units @ Br.4.10

Jan.20 Received from vendor 300 units @ Br.4.50

Jan.25 Received from vendor: 400 units @ Br. 4

Issues of material were as follows:

Jan. 4- 200 units;

Jan.10- 400 units;

Jan. 15- 100 units;

Jan 19- 100 units;

Jan.26- 200 units;

Jan.30- 250 units.

Issues are to be priced on the principle of “first in first out”. Write the Stores Ledger Account in
respect of the materials for the month of January

Required A. Prepare Stores Account on Last in First Out method assuming the same particulars