Question

DATA No.4: INVENTORY VALUATION Quantity in Units Rate per unit (Rs.) 2017 April 1 Opening Stock 300 @ Rs.9.7 2017 April 3 Purchases 250 @ Rs.9.8 2017 April 11 Issues 400 2017 April 15 Purchases 300 @ Rs. 10.5 2017 April 20 Issues 210 2017 April 25 Purchases 150 @ Rs. 10.3 2017 April 29 Issues 100 All Units were sold at Rs. 25 DATA No.5: FINANCIAL STATEMENTS The following balance were extracted from the ledger of Mr. Shakir on December 31, 2012 before the closing or books. DEBIT (i) Cash Rs. 22,500, Supplies Rs. 1,000 Accounts Receivable Rs. 19,000 | Prepaid Insurance Rs. 600 | Furniture Rs. 5,000 Sales Discount Rs. 500 | Salaries Expenses Rs. 13,000 Rent Expenses Rs. 11,000 Shakir Drawings Rs. 2,000 Merchandise Inventory Rs. 50,000 Purchases Rs. 50,000. CREDIT (ii) Notes Payable Rs. 4,500 | Shakir's Capital Rs. 16,600 Sales Rs. 145,000 | Commission Earned Rs. 5,000 Allowance for Bad Debts Rs. 1,500 Purchase Return and Allowance Rs.2,000 Supplementary Data for Adjustments on December 31, 2012. 1. Unpaid Salaries Rs. 3,000. 2. Pre-Paid Rent Rs. 1,000. 3. Unused Supplies Rs. 400. 4. Insurance was prepaid to the extent of Rs. 200. 5. Commission Earned Rs. 4,000.. 6. Merchandise Inventory-ending Rs. 8,000 7. Depreciation on Furniture for the year Rs. 500

Answer 1

No.	Date	Accounts	Debit	Credit
	2012
1.	Dec 31	Salaries Expense	3,000
		Unpaid Salaries		3,000
2.		Prepaid Rent	1,000
		Rent Expenses		1,000
3.		Supplies Expense	600
		Supplies		600
4.		Insurance Expense	400
		Prepaid Insurance		400
5.		Commission Earned	1,000
		Unearned Revenue		1,000
6 (a)		Merchandise Inventory	48,000
		Purchase returns and allowances	2,000
		Purchases		50,000
6 (b)		Cost of Goods Sold*	90,000
		Merchandise Inventory		90,000
7.		Depreciation Expense - Furniture	500
		Accumulated Depreciation - Furniture		500

*Cost of Goods Sold

= Merchandise Inventory + Net Purchases - Ending Inventory

= 50,000 + 48,000 - 8,000

= 90,000

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Dear Student, Inventory Valuation method is not mentioned in the first Question. Please mention the same and I'll update the answer.

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