Reference no: EM132782715

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,

Problem i) Calculate the gain or loss on monetary items for the year.

Problem ii) Clearly explain why it is a gain or loss.