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How does the rendering of services on account affect the
accounting equation? a. Liabilities increase; stockholder’s
equity decreasesb. Assets increase; liabilities increase c.
Assets decrease; stockholder’s equity increases d. Assets
increase; stockholder’s equity increases
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Answer Posted / vip
Liabilities increase
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In Pricing the gallons of petrol sold,service station 'A' follows the first-in-first-out method,while service station'B'follows last-in-first-out method.On 1st January both has the same quantity in stock viz.6,000 gallons at Rs.26 per gallon.During the month,each station recieved additional supplies of 6,000 gallons at Rs.27.50 per gallon.Sales for each of these two stations,during the month,were 8,800 gallons at Rs.29 per gallon. Determine for each service station,profit earned during the month and value of the petrol in stock at close of the month.
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