- This topic has 3 replies, 2 voices, and was last updated 6 months ago by
.
- Posts
This is the link to screenshots of the question and answer. Unfortunately, the question and the answer are too long and difficult to copy paste here, hence I have shared screenshots link.
I don’t understand how they have arrived at the purchase figure and how they have calculated the cost of sale t account by adding the opening cost of sales figure but not he closing cost of sales figure in the t account. please help!
You must not post complete questions and answers like this because they are copyright of Kaplan and it is therefore illegal for us to have them posted on our website.
As you should remember from my early lectures on bookkeeping, the cost of sales is the opening inventory plus the purchases less the closing inventory. In this question we know the cost of sales (there is no such thing as opening and closing cost of sales), we know the opening and closing inventory, and therefore purchases are the missing figure.
I’m very sorry, won’t happen again.
Thank you for the clarification. I have understood why I was getting it wrong.
- The topic ‘Statement of cashflows question from kaplan study text’ is closed to new replies.