Suppose you have business of laptops under the same brand “PAPA’s” (i.e) “PAPA’s Computer Store” and following transactions show purchases and sales of laptops during September:
Sep. 1: Balance on hand, 30 laptops having cost $60 each.
Sep. 4: Purchased 20 laptops at a cost $62 each on account.
Sep. 8: Sold 35 laptops at sale price $80 each on cash.
Sep. 9: Purchased 25 laptops at cost $65 each on cash.
(3)
Sep. 15: Purchased 40 laptops at cost $65 each on credit.
Sep. 20: Sold 55 laptops at sale price $90 each on credit.
Sep. 25: Purchased 35 laptops at cost $70 each on cash
Sep. 28: Sold 15 laptops at sale price $100 each on credit.
Sep. 30: Sold 25 laptops at sale price $115 each on cash.
Instructions:
- If you are following perpetual inventory system, how will you prepare inventory subsidiary ledger if you have planned to avail financing of $250,000 from Azizi Bank this year?
- If you don’t have any plan to take financing but have intentions to save taxes then how will you prepare inventory subsidiary ledger.
The process should be shown step by step with full details
