1.Cost of Sales for the Year Is 200,000, Mark up Is 30% - What Are Sales for the Year?260,000

1.Cost of sales for the year is £200,000, mark up is 30% - what are sales for the year?260,000

2.Sales for the year are £120,000, including VAT at 20%, gross profit margin is one quarter. Opening inventories are £10,000 closing inventory is £12,000. What are purchases for the year net of VAT?

120 – VAT = sales of £100, 100 x 0.75 = 75 Purchases = 77,000 (10 + 77 – 12 = 75)

3.You are preparing accounts from incomplete records, trade receivables at the start of the year were £2,500, and at the end £3,250. Bank receipts from receivables total £17,850; cash sales total £2,500 (net of VAT). What is the sales revenue for the year, net of VAT?£21,100

4.Ludo Bagman owns a cafe, called Gorge-us-gracious-me, he has been in business for a year and the following information has been produced for the first year of trading, ending on 31 Dec X4.

Ludo has decided to depreciate the shop fittings at 20% straight line method.

At 31 Dec X4, rent is pre-paid by £250 and wages are accrued by £550.

Ignoring VAT calculate:

Amount of sales – £153,500 + 2,500 = £156,000

Amount of purchases - £95,000 + 65,000 = 160,000

The amount of rent and rates and wages to be show in the SoPL.

R&R – 8750 - 250 = 8,500, wages 15,000 + 500 = £15,500

Prepare Ludo’s statement of profit or loss and his statement of financial position. Profit for year £26,020balancing figure £71,000

5.Demelza Robbins runs a haberdashery boutique, she has taken goods for own use but not kept any records. Calculate from the accounting records the value of the inventory she has taken:

Sales are £180,000

Opening inventory was £21,500

Purchases for the year £132,000

Closing inventory £25,000

Gross profit margin is 30%.

180,000 x 0.7 = £126,000: 21,500 + 132,000 – 25,000 = 128,500– 126,000 = £2,500 drawings

6.Hepzibah Smith owns a business selling antiques and collectables. He has been in business for a number of years. He does not keep a full set of accounting records and the following information is available in respect of the year ended 30 Jun X5.

Fixtures and fittings are being depreciated at 10% during the year using the straight line method.

Irrecoverable debts of £550 have been written off during the year.

Calculate:

Sales during the year: 121,000 – 36,000 +550 + 35,000 = 120,500

Purchases during the year: 62,500 – 32,500 + 30,000 = 60,000

Admin expenses to be shown on the statement of profit or loss: 30,000 – 500 + 700 = 30,200

Prepare the statement of profit or loss and his statement of financial position.

Profit = 27,300

Balancing figure – 68,010

Ignore VAT.

7.Using the figures below prepare the SLCA and the VAT account for the year ended 31 Mar X9. The business is not charged VAT on travel expenses.

All sales and purchases are on credit.

Further information: Selling expenses not included in the purchases day book £12,400 ex VAT.

SLCA

VAT

8.Alicia Spinnet runs an eye-brow shaping parlour, she is convinced that some of her stock of high end nail brow pens and tweezers have been stolen. The following information is available:

Sales for the year £600,000 (of goods)

Opening inventory £20,000

Purchases £430,000

Closing inventory £26,000

Gross profit margin is 30%.

Ignore VAT. Has any stock been stolen?

600 x 0.7 = £420,000

20 + 430 – 26 = 424

424 – 420 = £4,000 loss