Required:

Prepare Annas statements of profit or loss and also her statements of financial position for the month ended 31 January 2019 based on:

(i) Historic cost accounting (HCA) (ii) Current purchasing power accounting (CPPA)

(iii) Replacement cost accounting (RCA)

(a) Anna, who sells garden offices, had the following trial balance on 31 December 2018: DR CR 150,000 Capital Inventory Cash 90,000 60,000 150,000 150,000 Inventory consisted of 15 identical garden offices. During January 2019 she sold ten of these for a total of 110,000. Sales occurred evenly throughout the month. The following information is available: 31 December 2018 16 January 2019 31 January 2019 Retail price Replacement cost, Net realisable value, Index per garden office per garden office 100 6,000 9,400 104 7,000 11,000 108 8,000 12,500