Reference no: EM133078966

Question - Mr. Asif started business from 1 st September 2015. His investment in the business was Tk.20,000. The following transactions were completed during September: September-3; Merchandise purchased on account from Saad Tk.1,200, terms 2/15, N/30. September-5; Paid freight Tk.80 on purchase of September 3. September-8; Credit received from Saad Tk.100 for merchandise returned. September-9; Merchandise sold on account Tk.800. Terms 1/10, N/30. The cost of the sold merchandise was Tk.650. September-15; Merchandise purchased Tk.3,500, terms 2/10, N/30. September-16; Amount paid to Saad, less discount. September-19; Credit received from supplier Tk.200 for merchandise returned which was purchased on September 15. September-21; Merchandise sold in account Tk.1400. Terms N/30. The cost of the sold merchandise was Tk.1180. September-22; Amount paid for purchase on account of September 15. September-25; Amount received from buyer of September 9, Tk.800.

Required -

a) Journalizes the transactions of September using Perpetual Inventory System.

b) If the managers of company XYZ needs to have up to date records of Inventory for better production management, should the management prefer the periodic inventory system or the perpetual inventory system?