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Question 8: Marks-(10) Tariq Fisher Company uses a perpetual inventory system. On January 1, its...

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Question 8: Marks-(10) Tariq Fisher Company uses a perpetual inventory system. On January 1, its inventory account had a beginning balance of Rs 450,000. Tariq engaged in the following transactions during the year. Prepare all necessary transaction as General Entries and answer given below option. 1. Purchased merchandise inventory for Rs 500,000. 2. Generated net sales of Rs 600.000. 3. Recorded inventory shrinkage of Rs 10,000 after taking a physical inventory at year- end. 4. Reported gross profit for the year of Rs 180.000 in its income statement. a. At what amount was Cost of Goods Sold reported in the company's year-end income statement? b. At what amount was Merchandise Inventory reported in the company's year-end balance sheet? c. Immediately prior to recording inventory shrinkage at the end of the year, what was the balance of the Cost of Goods Sold account? What was the balance of the Merchandise Inventory account? d- Calculate the Gross profit margin ratio

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