Learning Objective: Accounting for Inventory and Retail Busincss Operations.

Pita Aigrais incorporated a business called Aigris Ltd and began trading as a hardware merchant on I st of March $2011.$ The transactions for the month of March $2011$ were as follows $($Ignore GST$)$:

March $1.$ Pita transferred $K10,000$ from his personal savings to business bank account.

Purchase shop fittings for cash: paid by cheque no$,100,K3,800.$

Paid March rent by cheque no$.101,$ K$750.$

$2.$ Purchase goods $(1000$ units$)$ on eredit form A Co$.$ Ltd$,$ K$2,500.$

$3.$ Banked cash sales $(172$ units$)$ totalling K$860.$

$4.$ Sold goods $(76$ units$)$ on credit to A$.$ Adam, invoice no$.001,$ K$380.$

$5.$ Purchase goods $(315$ units$)$ for resale: paid by cheque no$.102,K850.$

$6.$ Banked cash sales $(82$ units$)$ totalling $K410.$

$8.$ Purchase goods $(400)$ for resale on credit from B Co$.$ Ltd$,$ K$1,200.$

$9.$ Sold goods $(98$ units$)$ on account to B$.$ Brown: invoice no$.002,$ K$490.$

$10.$ Purchased office supplies: Paid cheque No$.103,$ K$120.$

$11.$ Banked cheque for return of defective goods $(31$ units$)$ that had been purchased on the $5$th March $2011$ for cash, K$94\mathrm{.}5.$

$12.$ Banked cash sales $(180$ units$)$ totalling K$900.$

$15.$ Issucd cheque no$.104$ for michcllancous expense, K$180.$

$16.$ Refund a customer $($sales on $12/3/11)$ for a cash sales return $(34$ units$)$: paid refund by cheque no$.105$ for K$170.$

$17.$ Purchase goods $(1,200$ units$)$ for resale on credit from C Co$.$ Ltd$,$ K$3,000.$

$18.$ Paid freight on goods purchased from CCo. Ltd$,$ cheque no$.106,K65.$

$19.$ Sold goods $(106$ units$)$ on credit to C$.$ Charles: invoice no$.003,$ K$530.$

$20.$ Banked cash sales $(212$ units$)$ totalling $K1,060.$

$22.$ Issued cheque no$.107$ to A$.$ Co$.$ Ltd in full settlements of outstanding account.

$23.$ Banked a cheque rectived from A$.$ Adams, in full settement of his account.

$24.$ Issued cheque no$.108$ Pita Aigris as a personal drawing, K$600.$

$26.$ Paid March Salaries: cheque no$.109$ in favour of A$.$ Harmer, K$650$; cheque. No$.110$ in favour of A$.$ Chriswell, K$560.$

$30.$ Paid March electricity: cheque no$.111,$ K$75.$

Paid March telephone: cheque no$.112,$ K$56.$

$31.$ Bank cash sales $(280$ units$)$ totalling $K1,400.$

Following Additional Information is available:

All credit sales and purchases are on terms $\frac{2}{10},\frac{n}{30}.$

The March salary of a part$-$time sales representative amounting to $K800$ was not paid until $2$ April $2011.$

Depreciation of shop fittings for the month of March amounted to K$38.$

Required:

Perpetual Inventory System

A$.$ Compute Cost of Sales and the Value of ending inventory using average costing method.

B$.$ Record the March transactions in a General Journal.

C$.$ Post the entries in the journals to the general ledger accounts.

D$.$ Prepare the trial balances of Aigris Ltd at $31$st March $2011..$

E$.$ Prepare Income Statement for the month ended $31$st March $2011.$

F$.$ Prepare Balance Sheet at $31$st March $2011.$

Periodic Inventory System

A$.$ Compute Cost of Sales and the Value of ending inventory using average costing method.

B$.$ Record the March transactions in a General Journal.

C$.$ Post the entries in the journals to the general ledger accounts.

D$.$ Prepare the trial balances of Aigris Ltd at $31$st March $2011..$

E$.$ Prepare Income Statement for the month ended $31$st March $2011.$

F$.$ Prepare Balance Sheet at $31$st March $2011.$