Unit 7 Price Index and retaing profit and loss account

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi

I wonder if anyone can help me out here as am having trouble with my homework and am at college this afternoon.
The question reads

A price index relevent to the company had an average value of 175.8 during the year ending 2003 abd an average value of 184.3 during the year ending 2004.

I need to restate the 2003 profit and loss account in terms of 2004 prices using the average values of the price index above.

Sales for 2003 = £8453,775.
sales for 2004 = £9468,005.

If anyone could explain in thick persons terms it would be very helpfull.
I.m sure its easy I just cant get my head around it using the examples i've already done in class

Thanks in advance

Lyn

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Unit 7 Price Index and retaing profit and loss account

    I take it you need to inflate.

    Take your 2003 sales value divide by 2003 rpi and times by 2004 rpi.

    Check it first with your tutor. Let me know if I was right. I think I am.

    Good Luck

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