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what is inflation?
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Answer Posted / aishwarya pillai
Inflation is fall in value of money/fall in purchasing
power of money.
Eg: My grandfather was able to buy 10 pencils for Rs.10 in
1990. Now my daughter is able to buy 5 pencils for Rs.10 in
2009.This fall in purchasing power of money from 10 pencils
to 5 pencils during 19 years is called inflation. Now your
money will buy you less than what it used to buy 19 years
back.
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hdn Systems Pvt. Ltd., manufactures a consumer durable which passes through two processes M and N. From the following details prepare necessary process ledger accounts bringing out clearly the cost of the product at each stage. Process ‘M’ Process ‘N’ Materials (Rs.) 30,000 3,000 Labour (Rs.) 10,000 12,000 Overheads (Rs.) 7,000 8,600 Input (units) 20,000 17,500 Normal loss 10% 4% Scrap value of loss (per unit) Re. 1.00 Rs. 2.00 There is no opening or closing W-I-P or stock at processes. Final output from the process ‘N’ was 17,000 units
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