Cream Ltd commenced trading on $1$ January $2023.$ The purchases and sales for the year have been as

follows:

On $1$ January $2023,$ Cream Ltd raised share capital of Rs$50,000$ and five $-$year loans of Rs $45,000.$ During

the year all purchases and sales were on cash terms, and expenses of Rs$11,400$ were also paid in cash.

REQUIRED:

Prepare an Income statement for the year ended $31$ December $2023$ using:

i$.$ The FIFO$($first$-$in$-$first$-$out$)$ method of inventory valuation $(5$ marks$)$

ii$.$ The AVCO method of inventory valuation $(5$ marks$)$