Mercado Ltd started its business with 21,000 in cash on 1 Jan 20X1, and immediately purchased...

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Mercado Ltd started its business with £21,000 in cash on 1 Jan 20X1, and immediately purchased 400 items of inventory at the price of £50 per item and put the remaining £1,000 in a bank account without any fees or interests. On 1 July 20X1, it sold all items at the price of £80 per item and received the payment in cash. The general price index during the year was as follows: 01-Jan 01-Jul 31-Dec 100 120 150 General price index What is the loss on cash for the year ends at 31 Dec 20X1 under current purchasing power accounting? Select one: a. £500 O b. £2,000 OC £1,500 d. £8,000 Ⓒe. £8,500 Mercado Ltd started its business with £21,000 in cash on 1 Jan 20X1, and immediately purchased 400 items of inventory at the price of £50 per item and put the remaining £1,000 in a bank account without any fees or interests. On 1 July 20X1, it sold all items at the price of £80 per item and received the payment in cash. The general price index during the year was as follows: 01-Jan 01-Jul 31-Dec 100 120 150 General price index What is the loss on cash for the year ends at 31 Dec 20X1 under current purchasing power accounting? Select one: a. £500 O b. £2,000 OC £1,500 d. £8,000 Ⓒe. £8,500