AS Incomplete Records

On 1 May, a trader lost all of his inventory in a fire. He has values for sales and purchases and

wishes to calculate the value of the inventory lost.

Which ratio should he use?

• gross margin

• profit margin

• trade payables

• trade receivables turnover

Sam was unable to conduct a physical count of inventory at 31 December 2016.

On 3 January 2017 inventory had been sold to Abdul for $11 950. The cost price of this inventory

had been $9560.

On 4 January 2017 inventory had been returned by Sita. It had been sold for $2390. The cost

price of this inventory was $1912.

Sam valued his inventory at 5 January 2017 at cost, $59 750.

What was the value of inventory at 31 December 2016?

• $50 190

• $52 012

• $67 398

• $69 310

Finn provides the following information.

What was Finn’s capital at the end of the year?

• $23 200

• $24 300

• $29 200

• $31 400

A bookkeeper prepared a sales ledger control account.

The following errors were then discovered.

1 An invoice posted to an individual customer’s account had been recorded as $95

instead of $59.

2 The total of receipts from customers had been undercast by $200.

3 Discount received from suppliers had been included in the control account.

4 A provision for doubtful debts had been included in the control account.

Which errors would result in the closing balance on the control account failing to agree with the

total of the customers’ account balances?

• 1, 2, 3 and 4

• 1, 2 and 3 only

• 1 and 4 only

• 3 and 4 only

A business maintains a mark-up of 40%. The following information was available for the year.

$

revenue 280 000

inventory at start 44 000

purchases 175 000

What was the value of closing inventory?

• $19 000

• $37 000

• $51 000

• $69 000

At the beginning of the financial year inventory was valued at $15 000. During the year, sales of

$21 000 and purchases of $18 000 were made. Unfortunately, all inventory was stolen on the last

day of the financial year.

Goods are marked up by 50% to calculate selling price.

What is the cost of the stolen inventory?

• $7500

• $11 000

• $19 000

• $22 500

A business does not keep complete accounting records. All transactions are in cash.

Which item will not be required in order to calculate the owner’s cash drawings?

• non-current assets purchased

• opening capital account

• purchases

• sales

During the month a company lost a quantity of inventory in a burglary. The table shows the

company’s results for the month.

A gross profit on all sales of 30% had been achieved.

What was the cost of the inventory lost in the burglary?

• $4000

• $5000

• $9000

• $13 000

At the start of the year a business had trade payables of $13 000. At the end of the year it owed

$15 000 to trade payables.

During the year it paid them $190 000, after taking a cash discount of $10 000.

What was the amount of the credit purchases for the year?

• $188 000

• $192 000

• $198 000

• $202 000