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An entity issues shares as consideration for the purchase of inventory. The shares were issued on 1st January, 2017. The inventory is eventually sold on 31st December, 2018. The value of the inventory on 1st January, 2017, was Rs. 8,00,000. This value was unchanged upto the date of sale. The sale proceed was Rs. 12,00,000. The shares issued have a market value of Rs. 9,00,000. Which of the following statement correctly describes the accounting treatment of this share based payment transaction?

An entity issues shares as consideration for the purchase of inventory. The shares were issued on 1st January, 2017. The inventory is eventually sold on 31st December, 2018. The value of the inventory on 1st January, 2017, was Rs. 8,00,000. This value was unchanged upto the date of sale. The sale proceed was Rs. 12,00,000. The shares issued have a market value of Rs. 9,00,000. Which of the following statement correctly describes the accounting treatment of this share based payment transaction? Correct Answer Equity is increased by Rs. 8,00,000 and inventory is increased by Rs. 8,00,000. The inventory value is expensed on sale on 31<sup>st</sup> December, 2018

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A', on 9th January, 2015 agrees to sell his immovable property to 'R' and out of the total sale consideration of Rs. 3,00,000/- receives a sum of Rs. 1,00,000/- from 'B' as advance payment and agrees to vacate the property and handover vacant peaceful physical possession thereof to 'B' and to execute the Sale Deed of the property in favour of 'B' on receipt of balance sale 'consideration' on or before 9th July, 2015. 'A' fails to vacate the property or to execute the Sale Deed or to deliver possession of the property to 'B'. 'B' after waiting patiently till 31st January, 2016, on 1st February, 2016 got issued a legal notice to 'A' to take the balance sale consideration and execute the Sale Deed and deliver vacant peaceful physical possession. 'A' vide his reply received by 'B' on 17th February, 2016 denies the agreement. The limitation of three years available to 'B' for instituting a suit for specific performance is:
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Raw material purchased:
1st January, 600 units @ Rs. 12 per unit
12th January, 500 units @ Rs. 14 per unit
21st January, 300 units @ Rs. 13 per unit
Raw material issued for manufacture:
3rd January 300 units
5th January 124 units
15th January 250 units
16th January 300 units
Raw material returned to stores from manufacturing department on 14th January, 50 units. The material is issued on First-in-First out method.
The value of material remaining in store on 21st January will be:
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