1. Vidya Invested $50000 to her children story book business
2. She purchased 1000 units of story books @ $2 each for cash
3. She sold 500 units of books at $5 each for cash
4. She bought 400 units of books for $3 each on account
5. She sold 600 units at $6 each for cash
6. Purchased a machine for $5000 from Zalak Auto traders
7. Paid salary $ 2500 for Naved at the end of the month
8. Paid rent of $1000 for Naveen
a. Prepare General journal entries
b. Calculate the gross profit based on
i. FIFO
ii. Weighted Average
iii. LIFO
c. Which method will you recommend for better gross profit in this instance?
d. Calculate the Net profit
e. Prepare Trial Balance
f. Prepare Income statement
g. Prepare Statement of Owners equity
h. Prepare Balance Sheet
Calculate the gross profit ratio
Calculate the net profit ratio
Calculate the Asset turnover ratio
Calculate inventory turnover ratio
