On 1 January, Stan and Oliver each started a business by investing €100 in cash, and then immediately purchased one widget, which at that date could have been resold for €120.
Stan sold his widget on 31 March for €130, but on 1 April discovered that he needed to pay €115 to buy another, which he did. On 30 June this was sold for €140, and a new one bought on 1 July for €125.
On 29 September this was sold for €150, and a replacement purchased on 30 September for €130, on which date the new one could have been sold for €160.
Oliver had been less active and had merely kept his first widget and read the newspaper.
Both have decided to adopt 30 September as their accounting date, and come to you for accounting services.
All widgets are identical.
Replacement costs changed on 31 March, 30 June, 29 September. How would the above appear under:
(a) historical cost
(b) replacement cost
(c) net realizable value.
You may find it helpful to do this by using a table with each date on the left and columns for Cash, Inventory, Profit, Holding Gains, etc. across the top.