Accounting Questions and Answers

The partnership agreement between Abba, Baba and Kaka contains the following provision:
(i) 5% interest to be paid on capital and no interest to be charged on drawings
(ii) Profits and losses to be shared in the ratio 3:2:1 respectively
(iii) net profit as at 31/12/95 N 2,250.
.................Abba......Baba.......Kake
Capital........5000......4000......3000
Current account...250......100.......175
Salary............300......300.......---
Drawings........600......500........250

Abba's capital balance at the end of the year will be

 

Date.............QTY. .....RATE........TOTAL
...............(Units).....N...........N
January 2nd.....500......25.....12500
March 7th.......250......28.......7000
Issues were made as follows:
Date............QTY. (uNITS)
January 9th .....200
February 14th ...200
March 11th ......200

The value of closing stock as at February 14th by simple average method is

Date.............QTY. .....RATE........TOTAL
...............(Units).....N...........N
January 2nd....500......25.....12500
March 7th.....250......28........7000
Issues were made as follows:
Date............QTY. (uNITS)
January 9th .....200
February 14th ...200
March 11th ......200

The closing stock on March 11th by LIFO valuation is

The value of x is

What is the stock valuation method used?