JAMB Accounts Principles of Accounts 2019 Paper

Concept:The store ledger issues goods from the earliest purchase batch first, so the remaining items are valued from later purchases.Explanation:On Feb 1, purchase 200 units at ₦2 each: $200 \times 2 = \text{₦}400$.On Feb 3, purchase 100 units at ₦1 each: $100 \times 1 = \text{₦}100$.Total stock value at this point is $\text{₦}400 + \text{₦}100 = \text{₦}500$.On Feb 4, issue 120 units from the first batch: $120 \times 2 = \text{₦}240$.Remaining stock value: $\text{₦}500 - \text{₦}240 = \text{₦}260$.On Feb 5, purchase 50 units at ₦3 each: $50 \times 3 = \text{₦}150$.Stock value before the next issue: $\text{₦}260 + \text{₦}150 = \text{₦}410$.On Feb 5, issue 100 units: first 80 units at ₦2 cost $80 \times 2 = \text{₦}160$, then 20 units at ₦1 cost $20 \times 1 = \text{₦}20$.Closing stock value: $\text{₦}410 - \text{₦}160 - \text{₦}20 = \text{₦}230$.Answer:The value of the closing stock is $\text{₦}230$.Correct option: C. 230.