ORGANISING THE BOOKKEEPING SYSTEM
REVISION QUESTIONS C2
260
1.4 The following totals appear in the daybooks for March 20 X 8:
Goods exc. sales tax sales tax
$ $
Sales daybook 40,000 7,000
Purchases daybook 20,000 3,500
Returns inwards daybook 2,000 350
Returns outwards daybook 4,000 700
Both opening and closing inventories are $3,000. The gross profi t for March 20 X 8 is:
$ … … … …
1.5 The petty cash imprest is restored to $100 at the end of each week. The following
amounts are paid out of petty cash during week 23:
Stationery $14.10, including sales tax at 17.5%
Travelling costs $25.50
Offi ce refreshments $12.90
Sundry payables $24.00 plus sales tax at 17.5%
The amount required to restore the imprest to $100 is:
$ … … … …
1.6 Inventories are stated using FIFO. Opening inventories were 10 units at $2 each.
Purchases were 30 units at $3 each, then issues of 12 units were made, followed by
issues of 8 units. Closing inventories were:
$ … … … …
1.7 In times of rising prices, the FIFO cost formula for inventories cost, when compared
with the average cost method, will usually produce:
(A) a higher profi t and a lower closing inventories value.
(B) a higher profi t and a higher closing inventories value.
(C) a lower profi t and a lower closing inventories value.
(D) a lower profi t and a higher closing inventories value.
1.8 Your fi rm uses the weighted average cost formula for inventories. On 1 October
20 X 8, there were 60 units in inventories valued at $12 each. On 8 October, 40 units
were purchased for $15 each, and a further 50 units were purchased for $18 each
on 14 October. On 21 October, 75 units were sold for $1,200. The value of closing
inventories at 31 October 20 X 8 was:
$ … … … …
1.9 Inventory movement for product X during the last quarter were as follows:
January Purchases 10 items at $19.80 each
February Sales 10 items at $30 each
March Purchases 20 items at $24.50 each
Sales 5 items at $30 each