CA - Unit 2 - Simple Average Method
CA - Unit 2 - Simple Average Method
CA - Unit 2 - Simple Average Method
FORMAT
Problems
1. The following transaction occur in the purchase and issue of a material:
Jan 2 Purchased 4000 units @ Rs 4.00 per unit
20 Purchased 500 units @ Rs. 5.00 per unit
Feb 5 Issued 2000 units
10 Purchased 6000 units @ Rs 6.00 per unit
12 Issued 4000 units
March 2 Issued 1000 units
5 Issued 2000 units
15 Purchased 4500 units @ Rs 5.50 per unit
20 Issued 3000 units
From the above, prepare the stores ledger account using Simple Average method.
1 Professor Sogara BI
Head, Department of Commerce(UG)
Krupanidhi Degree College
Solution:
WORKING NOTES:
5 Feb = Rs 4 + Rs 5 = 9 = 4.50
2 2
12 Feb = Rs 4 + Rs 5 + Rs 6 = 15 = 5
3 3
20 March = Rs 6 + Rs 5.50 = 11.50 = Rs 5.75
2 2
2 Professor Sogara BI
Head, Department of Commerce(UG)
Krupanidhi Degree College
2. Prepare Simple Average Method:
Receipt Quantity Rate Issue Quantity
Mar 2 200 units 2.00 -
10 300 units 2.40 -
15 - - 250 units
18 250 units 2.60 -
19 - - 200 units
Working Notes:
Date Quantity
6 Feb 100 kg
20 Feb 200 kg
25 Feb 200 kg
3 Professor Sogara BI
Head, Department of Commerce(UG)
Krupanidhi Degree College
Stores Ledger Account – SIMPLE AVERAGE METHOD
25 Feb
- - - 200 14 2800 100 - 1200
4 Professor Sogara BI
Head, Department of Commerce(UG)
Krupanidhi Degree College
STORES LEDGER ACCOUNT - SIMPLE AVERAGE METHOD
Working Notes:
Nov 5 = 2 + 2.10 = 4.1 = 2.05
2 2
Nov 9 = 2.10 + 2.4 = 2.25
2
Nov 25 = 2.4 + 2.05 + 2.5 = 6.95 = 2.32
3 3
5 Professor Sogara BI
Head, Department of Commerce(UG)
Krupanidhi Degree College
5.
6 Professor Sogara BI
Head, Department of Commerce(UG)
Krupanidhi Degree College
25/1/2016 20(surplus) 2.10 42 - - - 410 - 909
27/1/2016 - - - 250 2.27 568 160 - 341
28/1/2016 200 2.50 500 - - - 360 - 841
30/1/2016 - - - 2.33 47 340 - 794
20(Shortage)
31/1/2016 - - - 150 2.3 345 190 - 449
Closing Stock = 190 units = Rs 449
Working Note:
7 Professor Sogara BI
Head, Department of Commerce(UG)
Krupanidhi Degree College