True 0 False True True D False State whether the following statement are True or False 7. Under the Fixed capital method there are Capital account and Current account. 8. In FIFO Cost of goods sold will reflect the most recent costs and matching with revenue False 9. FIFO method assumes that units that the company bought latest will be issued first. 10. Date of commencement of the partnership is the one of items which should be included in the Partnership Deed False 11. Gross Profit method is used to estimate the amount in case if inventory destroy or missed due fire, theft, or other disaster. O True False 12. Interest on Capital is usually calculated on the opening capital and on the capital introduced during True D the year. True False SECTION-B ANSWER ANY TWO QUESTIONS AT 3 MARK EACH. (2 x 3 = 6 Marks) 13. Explain the key features of inventory. 14. Al Shanfari Company completed its inventory count. It arrived at a total inventory value of OMR 2,000. As a new member of Al Shanfari accounting department, you have been given the information listed below. Discuss how this information affects the reported cost of inventory. a. The company did not include in the count purchased goods of OMR 150 which were in transit (terms: FOB shipping point). b. The company did not include in the count sold inventory with a cost of OMR 120 which was in transit (terms: FOB shipping point). c. Al Shanfari included in the inventory goods held on consignment for Al Wahaibi Co., costing OMR 100 15. List out the advantages of Partnership 16. Ask and Task started business on April 1, 2018, with capitals of RO.100,000 and RO.80,000 respectively. Ask introduced RO.20,000 as additional capital on July 1, 2018. Interest on capital is to be allowed @ 10%. Calculate the interest on Capital payable to Ask and Task on 31, March 2019 SECTION -C ANSWER ANY TWO QUESTIONS AT 4 MARKS EACH (2 x 4 = 8 Marks) 17. Calculate inventory valuation using Average method for the following information The following transactions occurred in the month of March for Parts Gold Inc. March 1 Opening inventory 100 units @ OMR 2.000 March 7 Purchase 100 units @ OMR 2.200 March 18 Sale 150 units March 24 Purchase 250 units @ OMR 2.300 March 26 Sale 150 units March 31 Ending inventory 150 units