Opening stock hi “Menno ennr dulyi 4 $aoe are c (B) Last in first out method (LIFO) (Without Returns ana ITs and Laney Acco, ae Iilustration 21 Prepare stores ledger account under LIFO method from the ing in Illustration 1 above. OTMation Biv, Solution : i) Stores Ledger Account LIFO Method Name: Maximum level: Folio No, Code No.: Minimum level Bin.No, ~~ Description Reorder level : Location a ee ie Receipts _| Issues Bala Rate Amount] Ory. |” Rate |Amowil Oy] Rare Reference | Units | RsP| _ Rs.| Units|_RsP| Rs] Unis| pep |e Bs 2007 Jan.1| Balance Bid 1,000 | 26.00 | 26,000 5] GRN. No| 500 |24.50]12.250 1,000 | 26.00] 26,000) | 500 | 24.50| 12.250) 500| 24.50 112,250\| 750 | 26.00] 19,500 250| 26.00 | 6,500 7] M.R. No. 750 10| GR.N. No}1,500 |24.00 |36,000 750 | 26.00 | 19,500) 1,500 | 24.00 | 36,000! 12] M.R. No. 1,100] 24.00 6,400 | 750 | 26.00 | 19,500 400 | 24.00 9,600 15] GR.N. No|1,000 |25.00 |25,000| 750 | 26.00] 19,500) 400 | 24.00} 9.600 1,000 | 25.00 25,000" 17| M.R. No 500 18] M.R. No. 300 | 25] GR.N. No|!,500 |26.00 |39,000] | 29] MLR. No. 1,500, a 371 als, Sy y 7 stock = 1,350 units, valued at Rs, 34,100 (750 x 26 + 400 x 24 + 200 x 25) | van} No. = Goods Received Note Number; M.R. No. = Material Requisition B ee (With Returns and Losses of Material) “tration 22 _w a stores ledger card recording the following transactions under ‘FO method and (b) LIFO method. july 1 Opening stock 2,000 unit at Rs, 10 each "5. Received 1,000 units at Rs. 11 each 6 Issued 500 units 10 Received 5,000 units at Rs. 12 each, 12 Received back 50 units out of the issue made on 6th July. | 14 Issued 600 units. 18 Returned to supplier 100 units out of goods received on Sth. 19 Received back 100 units out of the issue made on 14th July. 2% Issued 150 units. 25 Reesved S00 mits at Rs. 14 each. //”\ 28 Issued 300 units. he stock verification report reveals that there was a shortage of 10 units on » july and another shortage of 15 units on 26th July. olution ; Stores Ledger Account FIFO Method Maximum level: __ Folio No. Bin.No. Location code :11} 1,100Py oo jaterials 3.73 ~ w \lustration 23 “vepare stores lee lustradfnun aca (425 x 10 + 900 x 11 + 5,000 x 12 + 50 x 10 + 100 x 10+ 500 x 14) GR.N.No. — Goods Received Note Number. M.R. No. - Material Requisition Number, Mat. Retd. Note = Material Returned Note. Debit Note is sent to suppliers when materials are returned. Shortage is treated like an issue and priced as per the method of pricing in operation, Returns from departments are treated just like fresh receipts at the price at which the original issue was made, Its reissue will be as per the method followed. material as the ‘first out’ (or)eS Vill. Pricing of Material Issues (Stores ledger- FIFO method (without returns and losses)) 1 ili tess Meeksce. 10. = Sep.9 500 units 6 Purchases 100 units at Rs. 11. 22 500 units 20 Purchases 700 units at Rs. 12 30 500 units 27 Purchases 400 units at Rs. 13 ‘13 Purchases 1,000 units at Rs. 14 Oct. 15 500 units Purchases 500 units at Rs. 15 22 500 units Purchases 400 units at Rs. 16 Nov. 11. 500 units : are to be priced on the principle of FIFO’. Write the stores (Madras, B.Com., May 1999] :Sep.30 | M.R. No, 02113 | RN. No. 01.15 | MAR. No. 01.20 | G.R.N. No, 001.22 | MR No. Now.AT | MR. No, Nov. 17 | GRAN. No, 1,000 14,000 7.50 3004 12 200}) 13 on 2 jo ct MAT-S0 ye” Solution a 1 - inf stores Ledger Account (FLFO) sowie i tT ne Fe Material’s Name Max. Level wit 1 tt Code No. Re-order Level ‘eri A ; Bin No. Min. Level Mate crock OF # Re-order Qly. purchases | Recep sues ave | Paricuiars |] rate | Amount | | Rate | Amount Oy: ing | ae [2% | me | Re Oy. Jssues Calculate @ hod fo method Solution