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Mercado Ltd started its business with 2 1 , 0 0 0 in cash on 1 Jan 2 0 1 , and immediately purchased 4
Mercado Ltd started its business with in cash on Jan and immediately
purchased items of inventory at the price of per item and put the remaining
in a bank account without any fees or interests.
On July it sold all items at the price of per item and received the payment in
cash.
The general price index during the year was as follows:
Jan Jul Dec
General price
index
What is the cash balance at the year end Dec X under current purchasing power
accounting?
Select one:
a
b
C
d
e
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