- 11 Marks
FA – L1 – Q91 – Inventory
Calculate closing inventory given sales, purchases, opening inventory, and a 25% mark-up.
Question
(a) A business makes all of its sales at a mark-up of 25%. During the year sales totalled GH¢98,000 and purchases were GH¢71,000. The inventory at the start of the year was valued at GH¢10,200.
What was the value of the closing inventory at the end of the year?
(b) A business has the following assets and liabilities at the start and end of March.
| 1 March | 31 March | |
|---|---|---|
| GH¢ | GH¢ | |
| Trade receivables | 6,100 | 7,400 |
| Trade payables | 3,900 | 3,500 |
The summarised bank statements for the year showed the following figures:
- Bankings for the year were GH¢78,500
- Payments to suppliers for the year were GH¢49,700
- The owner banks her takings from the till each month but before doing so in March she took GH¢5,000 for her own use.
What are the sales for the year?
(c) An accountant has prepared the following list of the assets and liabilities of a business, but has forgotten to enter the cash balance.
| GH¢ | |
|---|---|
| Trade payables | 4,900 |
| Inventory | 9,300 |
| Non-current assets | 98,900 |
| Capital | 97,200 |
| Bank loan | 15,700 |
| Receivables | 16,800 |
| Bank |
What is the missing figure for ‘Bank’?
Find Related Questions by Tags, levels, etc.
- Tags: Bankings, Drawings, Financial accounting, Sales, Trade Payables, Trade Receivables
- Level: Level 1
- Topic: Sales and Purchases
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