, Using the following information,

DATE PARTICULARS PRICE/AMOUNT

Jan.1 Balance b/f 1000 units Valued at shs.1000 Jan.1 Received 1000 units @1.00/unit Jan.10 Received 260 units @1.05/unit Jan.20 Issued 700 units Feb.4 Received 400 units @1.15/unit Feb.21 Received 300 units @1.25/units March.16 Issued 620 units April 12 Issued 240 units May 10 Received 500 units @1.10/unit

Required, Prepare stores ledger using, I. LIFO METHOD (8 marks)

II. Weighted average method (8 marks)

III. Analyze the closing stock in each case? (9 marks)

Question two, In 1988, PWICO Ltd. Issued shs. 1 billion 6% debentures of shs. 5,000 each par value, which were redeemable at shs. 5,100 on 30th June 1999. Annual appropriations had been made out of profits to a debenture redemption reserve set up under the terms of issue. The appropriations were invested annually on 30th June, together with the interest on investment for the year ended on that date. The trustees have power to purchase, for immediate cancellation, any debenture available at a market price below par, and to realise investments of the debenture redemption for this purpose. The following balances appeared in the companys books on 1st July 1998: