Reference no: EM132628746

Bata Shoe Company (Pakistan) Limited has been rendering its services to its valued customers by offering quality products. At December 31, 2018, Bata, Islamabad branch reported the inventory amounted to Rs. 1500,000. During the first month of 2018, Bata made following purchases and sales.

These transactions were as follows:

1 Jan, 2019

Purchased Ladies shoes from supplier on account. The Total cost of purchase amounted to Rs.200,000.

3 Jan

Purchased Furniture Items for outlet form Inter wood for Rs.100,000 Cash.

6 Jan

Sold shoes to customers for Rs. 150,000 cash, which had a total cost of Rs. 50,000.

10 Jan

Sold shoe stock to a distributor on account for Rs. 400,000. The Cost of home appliances was Rs. 200,000.

15 Jan

Paid Rs. 200,000 accounts payable to supplier.

20 Jan

Collected Rs. 400,000 accounts receivables from the distributor.

Required:

Problem a. Prepare Journal entries to record the transactions; assuming Bata Pakistan uses Perpetual inventory system.

Problem b. Prepare Journal entries to record the transactions; assuming Bata Pakistan uses Periodic inventory system.