What type of stock valuation would a vegetable seller adopt in valuing it's product?
LIFO
FIFO
Simple average
Weighted average
Correct answer is B
FIFO is a method of stock valuation that stands for 'First-In, First-Out'. This assumes that the first (oldest) units of stock produced or received are also the first ones that are sold. This is also suitable for perishable items
#2,550
#2,500
#2,350
#2,250
Correct answer is A
Closing capital = Opening Capital + Additional Capital + Profit - Less Loss - Drawings
1500 + 500 + 800 - 250 = 2550
#17,000
#23,000
#26,000
#30,000
Correct answer is C
Expenses debited to the profit and loss account would be;
Expenses + carriage outwards
20,000 + 6000 = 26000
#100,000
#86,000
#82,000
#76,000
Correct answer is A
sales 232,000
Add: disc. received 18,000
opening stock 28,000
+ purchase 128,000
cost of gds. avail. for sale 156,000
Less:closing stock 10,000
Cost of gds sold 146,000
Add Carriage inwards 4000 150000
Gross profit 100,000
Sales account and credit bank account
Purchases and credit bank account
Cash and credit freehold
Bank and credit freehold
Correct answer is B
In the book of the buyer, we debit stock or purchase account and credit bank