Single Entry and Incomplete Records

Over the course of an accounting period a business' debtors increased by £40,000. If 80% of the business' total sales of £750,000 were made on credit, no discount was allowed to debtors and no bad debts were written off, the amount of money received from debtors during the period was:

• £560,000

• £640,000

• £710,000

• £790,000

At the end of its most recent financial year, a firm, which sells exclusively on credit, was owed £60,000 by its debtors. The firm applies a mark-up of 25% on all goods and allows its debtors 60 days' credit (based on 360 days in the firm's financial year). Its gross profit for the year was:

• £72,000

• £90,000

• £122,000

• £180,000

Catherine O'Byme's trade is seasonal. Her monthly sales are 50% higher in the three summer months than in the other nine months of the year. She earns a gross margin of 25% in the summer months and 20% during the rest of the year. If her total sales for the year ended 30 April were

£283,500, her cost of sales for the same period was:

• £212,625

• £222,075

• £223,256

• £226,800

A firm has net assets of £8,000, net current assets of £3,000 and no long-term debt. Its fixed assets are:

• £3,000

• £5,000

• £8,000

• The total of fixed assets cannot be ascertained from the information provided.

A firm's capital at the beginning of a year was £16,500 and its capital at the end of the same year was £11,350. The proprietor's drawings during the year totalled £3,300 and no new capital was introduced. The firm's profit or loss for the year was:

• Loss of £1,850

• Profit of £1,850

• Loss of £8,450

• Profit of £8,450

The following information relates to a hardware merchant, who is not registered for VAT and who makes all purchases on credit. The gross profit earned by the merchant during 2000 was:

• £38,820

• £38,870

• £61,750

• £62,180