7 marksIncome Statements and Balance Sheets for Sole Traders

CSEC Principles of Accounts · January 2017 · Paper 2 · Question 2(c)

Using the information from the inventory form, prepare the Trading Account for Mhalal and Jack for the three months ended 31 March 2016.

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Other parts of this question

2(a)Explain in ONE sentence how LIFO differs from the FIFO method of inventory valuation.[1 mark]
2(b)Complete the inventory valuation form using the FIFO method, and state the value of inventory as at 31 March 2016.[11 marks]
2(d)Describe in ONE sentence the effect on cost of goods sold and gross profit if the LIFO method had been used which yields a lower closing inventory valuation.[1 mark]

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