You are required to prepare the balance sheet as on 31^st December 2019, by using net change method of CPP to answer the following MCQs

Interest on Debentures paid on 31^st December 2019

The general price index during the year was as follows:

On 1^st January 2019 = 300, On 31^st December 2019 = 360, Average for the year 2010 = 320

Assets	1/1/2019	31/12/2019	Liabilities	1/1/2019	31/12/2019
Plant	600,000	510,000	Share capital	700,000	700,000
Furniture	80,000	72,000	10% debentures	200,000	200,000
Inventory	120,000	140,000	Current liabilities	200,000	200,000
Debtors	100,000	100,000	Retained earnings		174,000
Cash	200,000	452,000
	1,100,000	1,274,000		1,100,000	1,274,000

The CPP value of the share capital after conversion is

a.

RO 840,000

b.

RO 700,000

c.

RO 740,000

d.

RO 800,000

The CPP value of Furniture after conversion is

a.

RO 81,600

b.

RO 86,400

c.

RO 87,900

d.

RO 82,300

The balancing figure of retained earnings is

a.

RO 153,200

b.

RO 172,300

c.

RO 160,200

d.

RO 167,900