FIFO, LIFO and Average Closing Stock Costing by Perpetual and Periodic Example

Problem

Accounts of ABC Ltd as on 31st Dec, 1997

Dec, 1997
1	Opening Stock 300 Units @ Rs. 9.70
3	Purchases 250 Units @ Rs. 9.80
11	Issues 400 Units
15	Purchases 300 Units @ Rs. 10.05
20	Issues 210 Units
25	Purchases 150 Units @ Rs. 10.30
26	Issues 100 Units

Work out the value of closing stock under the following methods of pricing

1. FIFO (Perpetual)
2. LIFO (Perpetual)
3. Weighted Average (Perpetual)
4. FIFO (Periodic)
5. LIFO ((Periodic)
6. Weighted Average (Periodic)

Solution

FIFO (Perpetual)

Date	Purchase			Issues			Balance
Dec, 1997	Qty	Rate	Value	Qty	Rate	Value	Qty	Rate	Value
1							300	9.7	2910
3	250	9.8	2450				300	9.7	2910
							250	9.8	2450
11				300	9.7	2910	150	9.8	1470
				100	9.8	980			0
15	300	10.05	3015				150	9.8	1470
			0				300	10.05	3015
20			0	150	9.8	1470	240	10.05	2412
			0	60	10.05	603			0
25	150	10.3	1545				240	10.05	2412
			0				150	10.3	1545
26			0	100	10.05	1005	140	10.05	1407
			0				150	10.3	1545
Value of Closing Stock							290		2952

LIFO (Perpetual)

ITIL Course ITI597 Videos by Charles Sturt University

ITI597 IT Infrastructure Library Foundation

This is a great set of videos for learning ITIL = Information Technology Infrastructure Library.

Abstract: This subject introduces the concepts of IT Service Management (ITSM) based on the IT Infrastructure Library (ITIL). It describes a set of processes involved in developing an IT framework and features the exciting and hands-on High Performance simulation that provides an interactive learning experience throughout the course. This results in a thorough grounding in the basic theory of ITSM, which can be used to participate in ITSM projects at any level.
University: Charles Sturt University

Presented By : Marco Cattaneo
1. CSU: ITIL v3 Introduction to the subject ITI597

2. CSU: ITIL v3 The Concept of Good Practice
3. CSU: ITIL v3 The Concept of a Service
4. CSU: ITIL v3 The Concept of Service Management
5. CSU: ITIL v3 The Concept of Functions and Processes
6. CSU: ITIL v3 The Concept of a Process and its Characteristics

2012 in review

The WordPress.com stats helper monkeys prepared a 2012 annual report for this blog.

Here’s an excerpt:

19,000 people fit into the new Barclays Center to see Jay-Z perform. This blog was viewed about 80,000 times in 2012. If it were a concert at the Barclays Center, it would take about 4 sold-out performances for that many people to see it.

Click here to see the complete report.

HEC Business & Computer Sciences Road Map 2012

Business Sciences Road Map, as define by HEC, 2012

Computer Sciences Road Map, as define by HEC, 2012

Taxation Accounting Handling in Pakistan as Withholding Tax Agent

Dear readers, I have decide to write tutorial for you about how taxation are done in Pakistan. The tutorial consists of four portions, First tax chart & tax ratios in Pakistan, scenarios in this tutorial will be cover, pricing from a supplier’s products including sale tax and finally the accounts handling of purchase & taxation as withholding tax Agent.

Let start

Tax Chart & Tax Ratios in Pakistan:

Below I have selected few heads for tax charts, with mentioning its nature and tax ratio.

Tax Chart	Nature	Tax (in percent)
Sale tax	Payment of Goods	16.00%
Income Tax	Payment of Goods	3.50%
Income Tax	Services	6.00%
Income Tax	Brokerage and Commission (Advertising Agent)	5.00%
Income Tax	Print Media and News Papers	Exemption

Scenarios:

Lets assume Company ABC purchases goods from Supplier S. Supplier S may be registered or unregistered. Below are two scenarios

Scenario	Description
a	If Supplier S is registered then Sale Tax 16% is narrated, in such a way that 20% will paid by Withholding Agent (Company ABC) and rest of 80% will be paid by registered Supplier S to Govt Treasury.
b	If Supplier S is unregistered then Sale Tax 16% is narrated, in such a way that 100% will paid by Withholding Agent to Govt Treasury.

Pricing from a Supplier’s Products Including Sale Tax and Income Tax:

Situation a			Situation b
Registered Supplier S Pricing			Unregistered Supplier S Pricing
Product P Gross Price including With Profit margin	191.88		Product P Gross Price including With Profit margin	191.88
Income Tax @ 3.5	8.12		Income Tax @ 3.5	8.12
Product P Selling Price including income tax	200		Product P Selling Price including income tax	200
Sale Tax @ 16%	32		Sale Tax @ 16%	32
Product P Selling Price including Sale tax	232		Product P Selling Price including income tax	232
Supplier S Sale Tax Amount to submitRules for Sale Tax:Supplier S have to submit this 32 Rupees (Sale Tax @ 16%). But According to Rule for Registered Supplier, Supplier S only submit 80% of 32 to Govt Treasury and Rest of 20% of 32 will be submitted by Company ABC (Withholding Agent) to Govt Treasury on behave of Supplier S.	25.6		Supplier S Sale Tax Amount to submitRules for Sale Tax:Supplier S have to submit this 32 Rupees (Sale Tax @ 16%). But According to Rule for Unregistered Supplier, 100% of 32 will be submitted by Company ABC (Withholding Agent) to Govt Treasury on behave of Supplier S.	0

Accounts Handling of Purchase & Taxation as Withholding Tax Agent:

Suppose company ABC is the registered withholding tax agent. Company ABC purchasing a product P from Supplier S. Here in this example we will discuss how company ABC maintains its accounting transaction when Supplier S is registered and unregistered.

Lets start

Supplier S is Registered				Supplier S is Unregistered
Description	Dr	Cr		Description	Dr	Cr
Purchase Entry				Purchase Entry
Product P (Purchase or Expense )	232			Product P (Purchase or Expense )	232
Account Payable		217.48		Account Payable		191.88
Sale tax Payable 20% of GST (GST @ 16%)		6.4		Sale tax Payable @16%		32
Income Tax Payable @ 3.5		8.12		Income Tax Payable @ 3.5		8.12
Payment Entry				Payment Entry
Account Payable	217.48			Account Payable	191.88
Bank/Cash		217.48		Bank/Cash		191.88
Withholding Tax Return				Withholding Tax Return
Sale Tax Payable With Holding Sales Tax deducted From Supplier S	6.4			Sale Tax Payable With Holding Sales Tax deducted From Supplier S	32
Income Tax Payable With Holding Income Tax deducted From Supplier	8.12			Income Tax Payable With Holding Income Tax deducted From Supplier	8.12
Bank/Cash		14.52		Bank/Cash		40.12

In coming new post I will show how this small example will be implemented in OpenERP.

My Home Theater

Samsung D5000 40”

Sony 5.1 Home Theater

Play Station 3

Dish TV

1 TB Media Drive

1 TB PS3 Games Backup Drive

2 TB Data Backup Drive

Lenovo Think pad x200

and My Room and Me

Big Project Initiated & funded by UNDP in OpenERP v6

One of the biggest project initiated and funded by UNDP in khyber pakhtunkhwa. Project name is ‘Strengthening Rule of Law in Malakand (SRLM)’ and domain is 12 districts of khyber pakhtunkhwa. Project assigned to Human Resource Development Centre (HRDC), IMSciences, Peshawar.

In 12 Districts, they were focus on following 8 areas;

1. ADR,
2. Bar Council,
3. Judiciary,
4. Paralegal,
5. Perception,
6. Police,
7. Prosecution and
8. NGO.

Purpose of project is first do brief survey in 12 districts & 8 areas about ‘Development of Need-Based Training Courses and Capacity Building of Master Trainers’ and than capacity building in these 8 areas  in 12 districts.

For this i have started to develop a software based interface in OpenERP v6 of ‘Training Needs Assessment (TNA) Questionnaire’ for different 8 areas considering junior and senior staff separately. This collected data from fields work will sync with SPSS in openERP v6 for heavy statistical reports.

OpenERP v6 module integration with SPSS 18.

Criminal Information System in OpenERP v6

Project :
Criminal Information System, Police Line Peshawar, Pakistan

 

Project Assigned By:
SP Investigation Umer Hayat

 

Project Completed  By:
Mohsin Yaseen

  

Software Tools Used:
OpenERP v6

 

Overview of Modules Developed and Customized in OpenERP:

Purpose:

1. Single Repository of all criminal record at district and province level
2. Quick searching of suspect or criminal from different perspective
3. Analysis of crime rate  from different perspective

Different Perspective Include:

• District wise crime
• Police station wise crime
• Nationality wise crime
• Main and sub caste wise crime
• Also Integration of above all perspective
• And much more.

68 Attributes of Each Criminal:In this criminal repository, 68 attributes are recorded for single criminal including its history of crime. Using these 68 attributes

1. We can analyze statistically ,
2. We can search criminal or suspect from 68 different attributes.

Inno8Tech (Outsource Project) Success Story in OpenERP v6

Project :
Outsource Project (Inno8Tech)

 

Project Assigned By:
Inno8Tech

 

Project Completed  By:
Mohsin Yaseen and Waqas Pitafi

  

Software Tools Used:
OpenERP v6

 

Overview of Modules Developed and Customized in OpenERP:

 

Customized Modules are; 

-Finance, Sale and Purchase

-CRM

-HR, Expense, Contract, Payroll, Attendance, Time Sheet and Recruitment 

-Project Management

 

Developed Modules are; 

-Project based Employee Advances & Recovery, Integration with invoice (finance), approval workflow

-Email and sms alerts against project completion, task assignment, task completion, project based advance requisition, advance approval and advance rejection. 

 

 

Project: Police Information System in OpenERP v6

Project :
Police information System

 

Project Assigned By:
Police Line District Mardan, NWFP Pakistan

 

Project Completed  By:
Mohsin Yaseen

  

Software Tools Used:
OpenERP v6

 

Overview of Modules Developed in OpenERP for Mardan Police Line:

 

This Module is developed for Purpose of Police Personal Evaluation at Mardan District of NWFP Pakistan

 

This Module includes,

 

- Officer Personal Informations,

- Current Posting and Current Rank

- History of All Posting and Promotion according to time

- Courses Passed during career and gain points

- Good Points assigned by senior and its all history of officer

- Different punishments given by senior officer and its bad points

- Leave Qouta, Earned leave history, Medical Leave History and Casual Leave History

- Record complaints against officer from differ persons, These complaints will only read by senior officer.

- Promotion and Posting Policy enforcement

- Retirement and experience in career

- Reports:
Strength of Police Station
Posting Wise Officer Selection
Course Assignment wise Officer Selection
Officer Selection by current posting tenure
Officer Selction by posting in home Police Station or circles