Review Questions

Volume 1 - Chapter 34

1. H Kim is a trader who sells all of his goods at 20% above cost. His books give
the following information at 31 December 20X7.

£
Stock at 1 January 20X7 8,765
Stock at 31 December 20X7 7,441
Sales for the year 72,000

Produce the trading account for the year ended 31 December 20X7.

(Purchases will be £61,324)

2. T Paris is a trader who sells all of his goods at 33% above cost. His books give
the following information at 30 June 20X4

£
Stock at 1 July 20X3 14,313
Purchases for the year 85,442
Sales for the year 100,000

Produce the trading account for the year ended 30 June 20X4.

(Closing stock will be £11,755)

3. R Eustace is a trade who sells all of her goods at 50% above cost. Her books
give the following information at 31 December 20X4:

£
Opening stock 4,555
Closing stock 3,653
Sales 39,000

Calculate the following:

(a) Cost of goods sold
(b) Purchases
(c) Gross profit

Show your answer in the form of a trading account

4. L Gurry is a trader who sells all of his goods at 25% above cost. His books
give the following information at 31 December 20X5:

£
Opening stock 13,566
Closing stock 10,834
Sales 48,750

Calculate the following:

(a) Cost of goods sold
(b) Purchases
(c) Gross profit

Show your answer in the form of a trading account