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PROBLEMS FOR GROUP $8$

$1.$ Prepare the Inventory records.

DATE PARTICULARS PRICE PER UNIT

$1\mathrm{.}01\mathrm{.}2021$ Balance in inventory was $1,000$ bags of rice OMR $4\mathrm{.}200$ per bag

$3\mathrm{.}01\mathrm{.}2021$ Purchased $1,200$ bags of rice OMR $4\mathrm{.}450$ per bag

$5\mathrm{.}01\mathrm{.}2021$ Purchased $640$ bags of rice OMR $4\mathrm{.}350$ per bag

$9\mathrm{.}01\mathrm{.}2021$ Sold $1320$ bags of rice

$12\mathrm{.}01\mathrm{.}2021$ Purchased $400$ bags of rice OMR $4\mathrm{.}150$ per bag

$22\mathrm{.}01\mathrm{.}2021$ Sold $1,040$ bags of rice

$23\mathrm{.}01\mathrm{.}2021$ Purchased $700$ bags of rice OMR $4\mathrm{.}550$ per bag

$24\mathrm{.}01\mathrm{.}2021$ Sold $1,000$ bags of rice

Required: Prepare the inventory records using Weighted Average method

$2.$ Ms$.$ Amur sold to Ms$.$ Amira OMR $160,000$ worth of goods on the $15$th of April $2021$ by accepting a $120$ days, $9\%$

interest bearing note. Both Ms$.$ Fatima & Ms$.$ Ruqaiya need your help in understanding how and in what way the notes

receivable and the payables should be treated. Provide them with the required help by showing how the transactions

would be treated in the books of both parties in the following situations.

a$)$ When the notes are accepted.

b$)$ On the maturity date, the note is honored.

c$)$ Suppose Ms$.$ Amur prepared final accounts on the $20$th of May $2021.$

d$)$ Following the above situation, the bill is met on maturity.

e$)$ The note was dishonored on the maturity date by Ms$.$ Amira.

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