Incomplete Records (Y7C16)

1	A business has compiled the following information for the year ended 31 October 20X2:
	Opening inventory Purchases Closing inventory			$ 386,200 989,000 422,700
	The gross profit as a percentage of sales is always 40% Based on these figures, what is the sales revenue for the year
	A	$1,333,500
	B	$1,587,500
	C	$2,381,25
	D	The sales revenue figure cannot be calculated from this information
2	Which of the following calculations could produce an acceptable figure for a trader's net profit for a period if no accounting records had been kept?
	A	Closing net assets plus drawings minus capital introduced minus opening net assets
	B	Closing net assets minus drawings plus capital introduced minus opening net assets
	C	Closing net assets minus drawings minus capital introduced minus opening net assets
	D	Closing net assets plus drawings plus capital introduced minus opening net assets
3	A sole trader fixes his prices to achieve a gross profit percentage on sales revenue of 40%. All his sales are for cash. He suspects that one of his sales assistants is stealing cash from sales revenue. His trading account for the month of June 20X3 is as follows:
	Recorded sales revenue Cost of sales Gross profit			$ 181,600 114,000 67,600
	Assuming that the cost of sales figure is correct, how much cash could the sales assistant have taken?
	A	$5,040
	B	$8,400
	C	$22,000
	D	It is not possible to calculate a figure from this information
	The following information is relevant for questions 4 and 5.
	A is a sole trader who does not keep full accounting records. The following details relate to her transactions with credit customers and suppliers for the year ended 30 November 20X3.
	Trade receivables, 1 December 20X2 Trade payables, 1 December 20X2 Cash received from customers Cash paid to suppliers Discounts allowed Discounts received Irrecoverable debts Amount due from a customer who is also a supplier offset against an amount due for goods supplied by him Trade receivables, 30 November 20X3 Trade payables, 30 November 20X3											$ 130,000 60,000 686,400 302,800 1,400 2,960 4,160 2,000 181,000 84,000
4	Based on the above information, what figure should appear in A's statement of profit or loss for the year ended 30 November 20X3 for sales revenue?
	A	$748,960
	B	$748,800
	C	$744,960
	D	$743,560
5	Based on the above information, what figure should appear in A's statement of profit or loss for the year ended 30 November 20X3 for purchases?
	A	$283,760
	B	$325,840
	C	$329,760
	D	$331,760
6	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 Purchases		183,600 249,200
	Closing inventory at cost		432,800 204,600
					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
7	A fire on 30 September 20X2 destroyed some of a company's inventory and its inventory records. The following information is available:
	Inventory 1 September 20X2 Sales for September 20X2 Purchases for September 20X2 Inventory in good condition at 30 September 20X2						$ 318,000 612,000 412,000 214,000
	Standard gross profit percentage on sales is 25% Based on this information, what is the value of the inventory lost?
	A	$96,000
	B	$271,000
	C	$26,400
	D	$57,000
8	A business's bank balance increased by $750,000 during its last financial year. During the same period it issued shares of $1 million and repaid a loan note of $750,000. It purchased non-current assets for $200,000 and charged depreciation of $100,000. Working capital (other than the bank balance) increased by $575,000. What was its profit for the year?
	A	$1,175,000
	B	$1,275,00
	C	$1,325,000
	D	$1,375,000
9	A sole trader's business made a profit of $32,500 during the year ended 31 March 20X8. This figure was after deducting $100 per week wages for himself. In addition, he put his home telephone bill through the business books, amounting to $400 plus sales tax at 17.5%. He is registered for sales tax and therefore has charged only the net amount to his statement of profit or loss and other comprehensive income. His capital at 1 April 20X7 was $6,500. What was his capital at 31 March 20X8?
	A	$33,730
	B	$33,800
	C	$38,930
	D	$39,000
10	Senji does not keep proper accounting records, and it is necessary to calculate her total purchases for the year ended 31 January 20X3 from the following information:
	Trade payables: 31 January 20X2 31 January 20X3 Payment to suppliers Cost of goods taken from inventory by Senji for her personal use Refunds received from suppliers Discounts received									$ 130,400 171,250 888,400 1,000 2,400 11,200
	What is the figure for purchases that should be included in Senji’s financial statements?
	A	$914,650
	B	$937,050
	C	$939,050
	D	$941,850
11	Aluki fixes prices to make a standard gross profit percentage on sales of 20%. The following information for the year ended 31 January 20X3 is available to compute her sales total for the year.
	Inventory: 1 February 20X2                   31 January 20X3 Purchases Purchases returns								$ 243,000 261,700 595,400 41,200
	What is the sales figure for the year ended 31 January 20X3?
	A	$669,375
	B	$702,600
	C	$772,375
	D	$741,480
12	Alpha is a sole trader who does not keep proper accounting records. Alpha’s first year of trading was 20X4. From reviewing Alpha’s bank statements and the incomplete records relating to cash maintained, the following summary has been compiled.
	Bank and cash summary, Alpha, 20X4
	Cash received from credit customers and paid into the bank Expenses paid out of cash received from credit customers before banking Cash sales										$ 381,600 6,800 112,900
	Other information, Alpha, 20X4
	Irrecoverable debts written off Discounts allowed to credit customers Closing balance of Trade receivables										7,200 9,400 0
	Which of the following correctly represents Alpha's sales figure for 20X4?
	A	$517,900
	B	$112,900
	C	$381,600
	D	$510,900
13	A sole trader who does not keep full accounting records wishes to calculate her sales revenue for the year. The information available is:
	1	Opening inventory				$17,000
	2	Closing inventory				$24,000
	3	Purchases				$91,000
	4	Standard gross profit percentage on sales revenue				40%
	Which of the following is the sales figure for the year calculated from these figures?
	A	$117,600
	B	$108,000
	C	$210,000
	D	$140,000
14	On 31 December 20X0 the inventory of V was completely destroyed by fire. The following information is available:
	1	Inventory at 1 December 20X0 at cost $28,400
	2	Purchases for December 20X0 $49,600
	3	Sales for December 20X0 $64,800
	4	Standard gross profit percentage on sales revenue 30%
	Based on this information, which of the following is the amount of inventory destroyed?
	A	$45,360
	B	$32,640
	C	$40,971
	D	$19,440
15	The following information is available for the year ended 31 December 20X4 for a trader who does not keep proper accounting records:
	Inventories at 1 January 20X4 Inventories at 31 December 20X4 Purchases			$ 38,000 45,000 637,000
	Gross profit percentage on sales = 30% Based on this information, what was the trader's sales figure for the year?
	A	$900,000
	B	$819,000
	C	$920,000
	D	$837,200
16	Wanda keeps no accounting records. The following information is available about her position and transactions for the year ended 31 December 20X4:
	Net assets at 1 January 20X4 Drawings during 20X4 Capital introduced during 20X4 Net assets at 31 December 20X4							$ 210,000 48,000 100,000 400,000
	Based on this information, what was Wanda's profit for 20X4?
	A	$42,000
	B	$242,000
	C	$138,000
	D	$338,000