A sole trader operates his business from a warehouse which has been damaged by fire which occurred at the end of financial year. After the fire the remaining inventory that is undamaged amounts to GHS 2000 (cost). the account established the following information; Inventoey at the beinning of the year was GHS16,000. purchases during the year were GHS115,000 sales during he year was GHS140000. the trader sells his good at a mark up of 25% of cost. How much was the gross profit?

A sole trader operates his business from a warehouse which has been damaged by fire which occurred at the end of financial year. After the fire the remaining inventory that is undamaged amounts to GHS 2000 (cost). the account established the following information; Inventoey at the beinning of the year was GHS16,000. purchases during the year were GHS115,000 sales during he year was GHS140000. the trader sells his good at a mark up of 25% of cost. How much was the gross profit?

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter20: Accounting For Inventory

Section: Chapter Questions

Problem 1CP

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A sole trader operates his business from a warehouse which has been damaged by fire which occurred at the end of financial year. After the fire the remaining inventory that is undamaged amounts to GHS 2000 (cost). the account established the following information; Inventoey at the beinning of the year was GHS16,000. purchases during the year were GHS115,000 sales during he year was GHS140000. the trader sells his good at a mark up of 25% of cost. How much was the gross profit? Subscriptions due but unpaid on 31 december were GHS800, what amount would be shown for subscription in the income and expenditure account for the year ended 31 december? When the trial balance extracted from a books of Karman enterprise at the year end fail to balance the difference was placed in a suspense account. Identify the amount that would have been placed in suspense as a result of each of the following errors: GHS2400 prepaid insurance has been brought forward from the previous year as a credit balance.
A sole trader operates his business from a warehouse, which has been damaged by a fire, which occurred at the end of the financial year. After the fire, the remaining inventory that is undamaged amounts to GH₵ 2,000 (cost). The accountant establishes the following information: I Inventory at the beginning of the year was GH₵ 16,000 II Purchases during the year were GH₵ 115,000 III Sales during the year were GH₵ 140,000 IV The trader sells his goods at a mark-up of 25% of cost How much was the gross profit?
A sole trader operates his business from a warehouse, which has been damaged by a fire, which occurred at the end of the financial year. After the fire, the remaining inventory that is undamaged amounts to GH₵ 2,000 (cost). The accountant establishes the following information: I Inventory at the beginning of the year was GH₵ 16,000 II Purchases during the year were GH₵ 115,000 III Sales during the year were GH₵ 140,000 IV The trader sells his goods at a mark-up of 25% of cost How much did the trader incurred as cost of sales?
A sole trader operates his business from a warehouse, which has been damaged by a fire, which occurred at the end of the financial year. After the fire, the remaining inventory that is undamaged amounts to GH₵ 2,000 (cost). The accountant establishes the following information: I Inventory at the beginning of the year was GH₵ 16,000 II Purchases during the year were GH₵ 115,000 III Sales during the year were GH₵ 140,000 IV The trader sells his goods at a mark-up of 25% of cost What is the value of the inventory lost in fire?
A sale trader operates his business from a warehouse ,which has been damage by a fire ,which occurred at the end of the financial year. After the fire ,the remaining inventory that is undamaged amount to Gh 2,000(Cost). The accountant establishes the following information : (a). Inventory at the beginning of the year was Gh 16,000 (b). Purchases during the year were Gh115,000 (c). Sales during the year were GH 140,000 (d).The trader sells his goods at a mark-up of 25% of cost . How much was the gross profit ?
For several years, Berry Limited has marked its purchases up by 33.33% and has consistently realised the expected rate of gross profit. Its inventory was insured against fire for R40 000, the policy being subject to the average clause. A fire took place on 25 September and all inventory was destroyed except for items which had cost R10 000 which were salvaged in an undamaged condition.The following information was obtained from the firm’s ledger: RInventory on hand at cost - 1 January 48 000Purchases – 1 January to 25 September 182 000Sales – 1 January to 25 September 240 000The business has a financial year which ends on 31 December.Required:5.1 Calculate:5.1.1 Cost of the inventory destroyed in the fire. (5)5.1.2 The amount to be claimed from the insurance company. (2)5.1.3 Calculate the amount of inventory destroyed and the amount of the insurance claim assuming that the company had always earned a gross profit of 33.33%. (8)
On September 30, 2020, a fire at Cherimoya Company’s warehouse caused severe damage to its entire inventory. Based on recent history, Cherimoya has a gross profit of 30% of net sales. A physical inventory disclosed usable damaged goods which Cherimoya estimates can be sold to a jobber for P50,000. The following information is available from Cherimoya’s records for the nine months ended September 30, 2020.Inventory, Jan. 1 - P550,000Total purchases recorded, Jan. 1 – Sept. 30 (includes P120,000 of goods still in transit, shipped Sept. 29, FOB shipping point) - P3,120,000Freight in - P60,000Purchase returns - P200,000Purchase discounts - P80,000Total sales delivered and recorded, Jan. 1 – Sept. 30 - P3,900,000Sales returns - P160,000Sales discounts - P40,000Using the gross profit method, how much is the inventory loss?
A sole trader fixes her prices by adding 50 per cent to the cost of all goods purchased. On 31 October 20X3 a fire destroyed a considerable part of the inventory and all inventory records. Her trading account for the year ended 31 October 20X3 included the following figures: $ $ Sales 281,250 Opening inventory at cost 183,600 Purchases 249,200 432,800 Closing inventory at cost 204,600 228,200 Gross profit 53,050 Using this information, what inventory loss has occurred? A $61,050 B $87,575 C $40,700 D $110,850
Wormold Industries suffered a fire in its warehouse on March 4, 2021. The warehouse was fullof finished goods, and after reviewing the damage, management determined that inventory,with a retail selling price of $90,000, was not damaged by the fire.For the period from January 1, 2021, to March 4, 2021, accounting records showed thefollowing: Purchases $650,000Purchase returns 16,000Sales revenue 955,000 The inventory balance on January 1, 2021, was $275,000, and the company has historicallyearned a gross profit percentage of 35%.Required: Use the gross profit method to determine the cost of inventory damaged by the fire.
The company completed the following transactions during 2020. • Jan 10 sold inventory to Natty Paul, $11,000, on account • May 15 wrote off as uncollectible the accounts of Terry Carter, $2,500 and Maggie Cube $400 • August 04 received 70% of the amount owed by Natty Paul and wrote off the remainder as uncollectible • October 26 received 30% of the funds owed from Maggie Cube as part payment of her account which had been written off earlier as uncollectible. • December 31, The Aging schedule showed an estimated $116,500 as uncollectible Requirements: 1. Prepare journal entries for each transaction (No narrations required) 2. Prepare the Allowance for Uncollectible and the Accounts Receivable accounts based on the information presented and balance off each account. 3. Prepare the balance sheet extract as at Dec 31, 2020, to show the net realizable value for the Accounts Receivable. 4. Assume credit sales for 2019 were $312,000 and that on December 31, 10% of credit…
The company completed the following transactions during 2020. Jan 10 sold inventory to Natty Paul, $11,000, on account May 15 wrote off as uncollectible the accounts of Terry Carter, $2,500 and Maggie Cube $400 August 04 received 70% of the amount owed by Natty Paul and wrote off the remainder as uncollectible October 26 received 30% of the funds owed from Maggie Cube as part payment of her account which had been written off earlier as uncollectible. December 31, The Aging schedule showed an estimated $116,500 as uncollectible Requirements: Prepare journal entries for each transaction (No narrations required) Prepare the Allowance for Uncollectible and the Accounts Receivable accounts based on the information presented and balance off each account. Prepare the balance sheet extract as at Dec 31, 2020, to show the net realizable value for the Accounts Receivable. Assume credit sales for 2019 were $312,000 and that on December 31, 10% of credit sales are estimated to be uncollectible.…
Shahi Foods & Spices Company purchased goods for OMR 25,000 and sold 70% of such goods during the accounting year ended on 31-12-2019. The market value of remaining goods was OMR 5,000. The company valued the closing inventory at OMR 5,000 and not at OMR 7,500. Is there any violation of accounting concept/convention by Shahi Foods & Spices Company?