Reference no: EM132749778
Question - Use the following information to answer the questions below
1 January 31 December
Accounts Payable 20,000 25,000
Accounts Receivable 30,000 40,000
Bank Overdraft 10,000 5,000
Dividend Payable 5,000 -----
Inventory 25,000 20,000
Consumer Price Index 100 105
Inventory Index 100 102
Required - Using current cost accounting,
i) Calculate the gain or loss on monetary items for the year.
ii) Clearly explain why it is a gain or loss.