Solution

Stock Statement as on 25th October, 2020 under LIFO method

stock at the end of the
Date Receipts/ Purchases Issues/ Sales transaction
Quantity Rate Amount Quantity Rate Amount Quantity Rate
01.10.2020 200 3.5

03.10.2020 300 4 1200 200 3.5

300 4

04.10.2020 300 4 1200

100 3.5 350 100 3.5

13.10.2020 900 4.3 3870 100 3.5

900 4.3

15.10.2020 600 4.3 2580 100 3.5

300 4.3

23.10.2020 600 3.8 2280 100 3.5

300 4.3
600 3.8

25.10.2020 600 3.8 2,280 100 3.5

300 4.3

The closing Stock on 25.10.2020 is 400 units valued at Rs.1,640

1. The LIFO method assumes the latest stock being sold

2.If Purchases & Sales are given on the same day, we first record the purchases and then the Sales get recorded
3. The remarks column is used for recording the fact of returns i.e Purchase return or Sales Return
 The following particulars have been extracted in respect of Material X. Prepare a st
at the end of the
transaction Remarks Ledger Account showing the receipts and issue, pricing the material issued on the b
Amount Calculate value of stock as on 25-10-2020
700 Receipts
01-10-2020 Opening Stock 200 units at Rs. 3.50 per unit
700 03-10-2020 Purchased 300 units at Rs. 4.00 per unit
1200 13-10-2020 Purchased 900 units at Rs. 4.30 per unit
23-10-2020 Purchased 600 units at Rs. 3.80 per unit
Issues
04-10-2020 Issued 400 units
350 15-10-2020 Issued 600 units
25-10-2020 Issued 600 units
350
3870

350
1290

350
1,290
2,280

350
1,290

recorded
of Material X. Prepare a store

he material issued on the basis of LIFO

Solution
Stock Statement as on 31st March, 2020 (LIFO Method )
Stock at the end of the
Date Receipts /Purchases Sales/Issues Transactions
Quantity Rate Amount Quantity Rate Amount Quantity Rate Amount
01.01.2020 1500 20 30,000

16.01.2020 500 20 10,000 1500 20 30,000

500 20 10,000

21.01.2020 500 20 10,000

500 20 10,000 1,000 20 20,000

09.02.2020 5,750 21 120,750 1,000 20 20,000

5,750 21 120,750

26.02.2020 1,250 21 26,250 1,000 20 20,000

4,500 21 94500

03.03.2020 1,400 21 29,400 1,000 20 20,000

3,100 21 65,100

12.03.2020 3,500 24 84,000 1,000 20 20,000

3,100 21 65,100
3,500 24 84,000

12.03.2020 2,800 24 67,200 1,000 20 20,000

3,100 21 65,100
700 24 16,800

22.03.2020 600 24 14,400 1,000 20 20,000

3,100 21 65,100
100 24 2,400

The Closing Stock is 4,200 units valued at Rs.87,500

 Date Purchases Issue/Sales Closing Stock
Units Rate Amount Units Rate Amount Units Rate

Remarks 12/31/2019 1500 20

1/16/2020 500 20 10000 2000 20
Opening Stock 1/21/2020 1000 20 20000 1000 20
2/9/2020 5750 21 120750 1000 20
5750 21
2/26/2020 1250 21 26250 1000 20
4500 21
3/3/2020 1400 21 29400 1000 20
3100 21
3/12/2020 3500 24 84000 2800 24 67200 1000 20
3100 21
700 24
3/22/2020 600 24 14400 1000 20
3100 21
100 24
You are required to value the stock under FIFO & LIFO
Amount

30000
40000
20000
20000
120750
20000
94500
20000
65100
20000
65100
16800
20000
65100
2400
 Stock Statement as on 31st March, 2020 (LIFO Method
Stock )at the end of the
Date Receipts /Purchases Sales/Issues Transactions

Quantity Rate Amount Quantity Rate Amount Quantity Rate Amount

01.11.2018 40 14 560

02.11.2018 30 15 450 40 14 560

30 15 450

04.11.2018 20 15 300 40 14 560

30 15 450
20 15 300

05.11.2018 20 15 300
20 15 300 40 14 560
10 15 150

10.11.2018 10 15 150 40 14 560

17.11.2018 30 16 480 40 14 560

30 16 480

20.11.2018 25 16 400 40 14 560

5 16 80

28.11.2018 50 13 650 40 14 560

5 16 80

48* 13 650

30.11.2018 40 13 520 40 14 560

5 16 80
8* 13 104
45 744
744
 Remarks
Price per
Amount Date Purchases Sales unit

11/1/2018 Balance 40 - 14
11/2/2018 30 - 15
11/4/2018 20 - 15
11/5/2018 - 40 18.5
11/10/2018 - 10 19
11/17/2018 30 - 16
11/20/2018 - 25 20
11/28/2018 50 - 13
11/30/2018 - 40 16
On 29-11-2018, two units were found damaged and had to
be discarded.

Statenment of Profit
Particulars Calculation Amount
Opening Stock 40*14 560
Add: Purchases
02.11.2018 30*15 450
04.11.2018 20*15 300
17.11.2018 30*16 480
28.11.2018 50*13 650
(A) 2440

Less: Sales
05.11.2018 40*18.5 740
*Two units were damaged
and were discarded
10.11.2018 10*19 190
20.11.2018 25*20 500
10units - 2 damaged= 8 30.11.2018 40*16 640
units Add: Closing Stock 744
(B) 2814

The profit is SP -CP

 WEIGHTED AVERAGE METHOD
Stock Statement as on 25th October, 2020 under LIFO method
stock at the end of the
Date Receipts/ Purchases Issues/ Sales transaction
Quantity Rate Amount Quantity Rate Amount Quantity Rate
01.10.2020 200 3.500

3.10.2020 300 4.000 1200 500 3.800

04.10.2020 400 3.8 1520 100 3.800

13.10.2020 900 4.300 3870 1000 4.250

15.10.2020 600 4.250 2550 400 4.250

23.10.2020 600 3.800 2280 1000 3.980

25.10.2020 600 3.98 2388 400 3.98

The Closing Stock is 400 units valued at Rs.1,592

kdat the end of the The following particulars have been extracted in respect of Material X. Prepare a
transaction Remarks Ledger Account on the basis of WAM.
Amount Calculate value of stock as on 25-10-2020
700 Receipts
01-10-2020 Opening Stock 200 units at Rs. 3.50 per unit
1,900 03-10-2020 Purchased 300 units at Rs. 4.00 per unit
13-10-2020 Purchased 900 units at Rs. 4.30 per unit
380 23-10-2020 Purchased 600 units at Rs. 3.80 per unit
Issues
4250 04-10-2020 Issued 400 units
15-10-2020 Issued 600 units
1700 25-10-2020 Issued 600 units

3980 STATEMENT OF PROFIT

1592 Opening Stock 1.10.2020 700

Purchases 3.10.2020 1200
13.10.2020 3,870
23.10.2020 2,280
(A) 8050
Lees :
Sales 4.10.2020 1,520
15.10.2020 2,550
25.10.2020 2,388
Closing Stock 1,592
(B) 8,050

The totals are coming the same as the units have beensold at the same price

The Stock Statement will indicate:

FIFO The Stock value would be maximum as the latest stock is in the business
LIFO The Stock Value would be minimum the earlier stock is in the business

WAM The stock value would be between LIFO FIFO

Material X. Prepare a store

Profit is Maximum
Profit is Minimum
Profit is in between
LIFO & FIFO
 Stock Statement
Date Receipts /Purchases Sales/Issues
Quantity Rate Amount Quantity Rate
01.01.2020

16.01.2020 500 20 10,000

21.01.2020 1000 20

09.02.2020 5,750 21 120,750

26.02.2020 1,250 20.852

03.03.2020 1,400 20.852

12.03.2020 3500 24 84000

12.03.2020 2,800 22.302

22.03.2020 600 22.301

The Closing Stock is 4,200 units valued at Rs

There in no P/L as the units have been sold at the Purchase Price
 Stock Statement Stock at the end of the
Sales/Issues Transactions Remarks Date Purchases
Amount Quantity Rate Amount Units
1,500 20 30,000 12/31/2019
1/16/2020 500
2,000 20 40,000 1/21/2020
2/9/2020 5750
20,000 1,000 20 20,000
2/26/2020
6,750 20.852 140,750 140750/6750= 20.852
3/3/2020
26065 5,500 20.852 114,685 140750-26065=1,14,685
114685/5500=20.852 3/12/2020 3500

29192.8 4,100 20.852 85492 114685-29193=85,492

20.8517073170732 3/22/2020

7600 22.302 169,492 85,492_84,000= 1,69,492

22.3015789473684
Statement of P
Op.Stock 1.01
62,446 4800 22.301 107046 1,69,492-62,446=1,07,046 Purchases 16.01
22.30125 9.02
12.03
13,381 4,200 22.301 93664 107046-13381= 93,665 (A)

Sales 21.01
4,200 units valued at Rs.93,665 26.02
3.03
at the Purchase Price 12.03
22.03
Cl.Stock
(B)

P/L
Purchases Issue/Sales Closing Stock
Rate Amount Units Rate Amount Units Rate Amount
1500 20 30000
20 10000 2000 20 40000
1000 20 20000 1000 20 20000
21 120750 1000 20 20000
5750 21 120750
1250 21 26250 1000 20 20000
4500 21 94500
1400 21 29400 1000 20 20000
3100 21 65100
24 84000 2800 24 67200 1000 20 20000
3100 21 65100
700 24 16800
600 24 14400 1000 20 20000
3100 21 65100
100 24 2400

Statement of Profit
30,000
10,000
120,750
84,000
244,750

20,000
26,065
29,193
62,446
13,381
93,665
244,750

NIL
 REVISION ON LIFO

Stock Statement as on 25th October, 2020 under LIFO method

stock at the end of the
Date Receipts/ Purchases Issues/ Sales transaction Remarks
Quantity Rate Amount Quantity Rate Amount Quantity Rate Amount
1.10.2020 200 3.5 700

3.10.2020 300 4 1200 200 3.5 700

300 4 1200

4.10.2020 300 4 1200

100 3.5 350 100 3.5 350

13.10.2020 900 4.3 3870 100 3.5 350

900 4.3 3870

15.10.2020 600 4.3 2580 100 3.5 350

300 4.3 1290

23.10.2020 600 3.8 2280 100 3.5 350

300 4.3 1290
600 3.8 2280

25.10.2020 600 3.8 2280

100 3.5 350
300 4.3 1290

The closing Stock is 400 units valued @Rs.1640

 The following particulars have been extracted in respect of Material X. Prepare a store
Ledger Account showing the receipts and issue, pricing the material issued on the basis of FIFO, LIFO&w\ WAM
Calculate value of stock as on 25-10-2020

Receipts
01-10-2020 Opening Stock 200 units at Rs. 3.50 per unit
03-10-2020 Purchased 300 units at Rs. 4.00 per unit
13-10-2020 Purchased 900 units at Rs. 4.30 per unit
23-10-2020 Purchased 600 units at Rs. 3.80 per unit
Issues
04-10-2020 Issued 400 units at 4.00
15-10-2020 Issued 600 units at 5.00
25-10-2020 Issued 600 units at 6.00

Statement of Profit

Op.Stock 700
Purchases 3.10 1200
13.1 3870
23.1 2280
(A) 8050

Less
Sales 4.1 400*4 1600
15.1 600*5 3000
600*6 3600
Add;ClStk. 1,640
(B) 9840
Profit = S.P- CP 1790

The purchases are always recorded from tnhe Stoclk Statement

The sales are always recorded at the S.P from the Question
of FIFO, LIFO&w\ WAM
 REVISION ON FIFO

Stock Statement as on 25th October, 2020 under LIFO method

stock at the end of the
Date Receipts/ Purchases Issues/ Sales transaction
Quantity Rate Amount Quantity Rate Amount Quantity Rate Amount

1.10.2020 200 3.75 750

3.10.2020 300 4.10 1230 200 3.75 750

300 4.10 1230

4.10.2020 200 3.75 750

200 4.10 820
100 4.10 410

13.10.2020 900 4.40 3960 100 4.10 410

900 4.40 3,960

15.10.2020 100 4.10 410

500 4.40 2200 400 4.40 1760

23.10.2020 600 3.90 2340 400 4.40 1760

600 3.90 2340

25.10.2020 400 4.40 1760

200 3.90 780 400 3.9 1560

The closing Stock is 400 units valued at Rs.1560

 The following particulars have been extracted in respect of Material X. Prepare a store
Ledger Account showing the receipts and issue, pricing the material issued on the basis of FIFO and LIFO
Calculate value of stock as on 25-10-2020

Remarks Receipts
01-10-2020 Opening Stock 200 units at Rs.3.75per unit
03-10-2020 Purchased 300 units at Rs.4.10 per unit
13-10-2020 Purchased 900 units at Rs. 4.40 per unit
23-10-2020 Purchased 600 units at Rs. 3.90 per unit

04-10-2020 Issued 400 units at Rs.. 4.25

15-10-2020 Issued 600 units at Rs.5.50
25-10-2020 Issued 600 units at Rs.6.00

Statement of Profit
Op.Stk. 750
purchases 3.10.2020 1230
13.10.2020 3960
23.10.2020 2340
(A) 8280

Less:
Sales 4.10 1700
15.10 3300
25.1 3600 8600
Cl.Stk. 1560
(B) 10160

Profit = SP - CP 1880
n the basis of FIFO and LIFO and WAM
 REVISION ON WAM

Stock Statement as on 25th October, 2020 under LIFO method

stock at the end of the
Date Receipts/ Purchases Issues/ Sales transaction
Quantity Rate Amount Quantity Rate Amount Quantity Rate Amount

1.10 200 3.6 720

3.10 300 4.15 1245 500 3.93 1965

4.10 400 3.93 1572 100 3.93 393

13.10 900 4.45 4005 1000 4.398 4398

15.10 600 4.398 2639.00 400 4.398 1759

23.10 600 4.10 2460 1000 4.22 4219

25.10. 600 4.22 2532 400 4.22 1688

The closing Stock is 400 units valued at Rs.1688

 The following particulars have been extracted in respect of Material X. Prepare a store
Ledger Account showing the receipts and issue, pricing the material issued on the basis of FIFO and LIFO
Calculate value of stock as on 25-10-2020
Remarks Receipts
01-10-2020 Opening Stock 200 units at Rs. 3.60 per unit
03-10-2020 Purchased 300 units at Rs. 4.15 per unit
13-10-2020 Purchased 900 units at Rs. 4.45 per unit
23-10-2020 Purchased 600 units at Rs4.10 per unit
Issues
04-10-2020 Issued 400 units at 4.35
15-10-2020 Issued 600 units at Rs.5.10
25-10-2020 Issued 600 units at Rs.6.20

Statement of Profit
Op.Stock 720
Purchases
3.10 1245
13.10 4005
23.10 2460 7710
(A) 8430
Sales
4.10 1740
15.10 3060
25.10 3720 8520
ADD: Cl. Stock 1688
(B) 10208
Profit = SP- CP 1778
Closing Stock will be Impact on Profit
FIFO Maximum FIFO Highest
LIFO Minimum LIFO Least
WAM In Between the LIFO& FIFO WAM In between LIFO & FIFO
n the basis of FIFO and LIFO

ween LIFO & FIFO