You are required to prepare the Balance Sheet as on 31-12-2019 by using the CPP Method and
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Question:
You are required to prepare the Balance Sheet as on 31-12-2019 by using the CPP Method and answer the following questions.
Assets | Amount OMR | Liabilities | Amount OMR |
Fixed Assets | 300,000 | Share Capital | 350,000 |
Inventory (FIFO) | 75,000 | 10% Debentures | 100,000 |
Debtors | 50,000 | Current Liabilities | 100,000 |
Cash | 225,000 | Retained Earnings | 100,000 |
Total | 650,000 | Total | 650,000 |
Price Index on 1-1-2019 was 300 and on 31-12-2019 was 390 |
1. What is the total amount of the Balance Sheet as per the CPP Method?
a-OMR 761,000
b-OMR 746,000
c-OMR 716,750
d-OMR 782,750
2. What is the amount of Retained Earnings as per the CPP Method?
a-OMR 92,750
b-OMR 69,750
c-OMR 91,000
d-OMR 96,750
3. What is the amount of Fixed Assets as per the CPP Method?
a-OMR 390,000
b-OMR 360,000
c-OMR 630,000
d-OMR 420,000
Related Book For
Financial Accounting an introduction to concepts, methods and uses
ISBN: 978-0324789003
13th Edition
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis
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