Question 16

a. Markup =GP/COGS X100%

Margin = GP/REVENUE x100%
b.

W- 40,000/125X100=32000

Revenue 40200
-sales return (200)
40,000
Cost of sales
Opening inventory 2300
+purchase 31600
-purchase return (400)
- Closing inventory (X) (32,000)
Gross profit 8000

W : X=2300+31600-400-32000
Answer= 1500
Question 17

Working

W1

X/3500=13.5

X=47500

W2

47250=3000+x-4000

Purchase =48250

W3

Revenue =9450+47250

$ $
Revenue 56700
- Cost of sales
Opening inventory 3000
+purchase 48250
-closing inventory (400) (47250)
Gross profit 9450
Question 18

Belinda’s

Statement of affairs at 1/9/2005

Non-current assets Cost Depreciation NBV
Premises 80,000
Fixtures and equipment 6000
Motor vehicle 11800
97800
Current assets
Trade receivable 4100
Bank 2500 6600
Total assets 104400
Capital 83800
Non-current liabilities
Loan 20,000
Current liabilities
Wages accrued 600

Total equity &liabilities 104,400

Belinda’s

Statement of affairs at 31/8/2006

Non-current assets Cost Depreciation NBV

Premises 80,000
Fixtures and equipment 7000 1400 5600
Motor vehicle 11800 2360 9440
95040
Current assets
Trade receivable 4750
Total assets 99790
Capital 87800
Non-current liabilities
Loan 10,000
Current liabilities
Wages accrued 570
Bank OD 1420 1990
Total equity &liabilities 99790

Belinda’s

Calculation of profit at 31/8/2006

$ $
Closing capital 87800
Less :opening capital (83800)
Add :drawings 4500 (79300)
Profit for the year 8500
Question 19

Nabil ’s

Statement of affairs at 1/4/2007

Non-current assets Cost Depreciation NBV

Machinery 38000
equipment 13500
Motor vehicle 9400
60900
Current assets
Inventory 5300
Trade receivable 4150
Petty cash 100
Other receivable 240
Bank 1580
Total assets 72270
Capital 53200
Non-current liabilities
Loan 15,000
Current liabilities
Trade payable 3950
Other payable 120 4070
Total equity &liabilities 72270
Nabil’s

Statement of affairs at 31/3/2008

Non-current assets Cost Depreciation NBV
Machinery 38000 7600 30400
equipment 13500 2025 11475
Motor vehicle 9400 1300 8100
49975
Current assets
Inventory 6050
Trade receivable (4970-170) 4800
- Provision for doubtful (96) 4704
Petty cash 100
Total assets 60829
Capital 45715
Non-current liabilities
Loan 5,000
Current liabilities
Trade payable 4080
Other payable 170
Bank overdraft 5864 10114
Total equity &liabilities 60829

Nabil’s

Calculation of profit at 31/3/2008

$ $
Closing capital 45715
Less :opening capital (53200)
Add :drawings 4500
Less: capital introduction (10,000) (58115)
loss for the year 12400