Question 1

Question 2
Sage Pvt. Ltd (SPL) manufactures and sells 1300 CC. Motor Cars to its customers for Rs.1,500,000 per car.
The stock of cars was included in the closing inventory as of 31 December 2019 at a cost of Rs.1,000,000
per car. The competitor launched the new 1300 CC hybrid cars on 31 December 2019 for Rs.1,800,000
per car.

During the final audit the auditors noted that the subsequent selling price for the Cars at 15th January
2020 was Rs.1,400,000 per car. Furthermore, inquiry reveals that during the physical stock take, a car is
damaged. Accordingly, SPL in the following week, spent a total of Rs.500,000 for repairing.

Required: Compute the amount of:

a) Net realizable value of the damaged cars

b) inventory write-down (loss) to the cars

Question 3
Brad Shaw & Co. imports raw materials from China worth Rs.1 million. They paid Rs.80,000 as import
duties and Rs.20,000 as import taxes (the import taxes were subsequently refunded by the local
government).

They paid Rs.50,000 for transportation of the materials from China and another Rs.10,000 as port
handling charges for loading the materials at China.

Marketing expenses were Rs.10,000 and the general administrative overheads amounted to Rs.5,000.

What will be the value of inventories as per IAS 2?

Question 4