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This is a long one but please bear with me as I’ve spent a lot of time on this example and it’s driving me mad!
Example 2:-
Please clarify a few points for me:-
Typical markup is 30% in question but 50% in answer – so that gives us a completely different figure for sales when working it out from cost of sales
to get total sales 44k (cost of sales) x 130/100 = 57,200
As no records were kept of cash sales where does the figure of 55k for the credit sales come from………the question has a figure of 70k as a file of copy invoices………this then does not give us any cash sales, in fact it should give us a negative figure
credit sales 70k-57,200 (sales from above) = 12,800 ??????
also it affects the Receivables account
Op bal 10k + sales 70k = 80k clos bal = 8k – 80k gives us 72k in receipts
This then affects the bank
op balances 100+12k + 72k = 84100
payments 43k+520+13k+2300+14700 drawings (balance)+80+10500=84100Then the trading profit & loss account is not correct either but as the cost of sales plus the profit margin of 30% comes to less than the actual sales, I don’t know what to do about this.
Anyone help me with this dilemma, I’ve been working at bookkeeping for 25 years and am doing the ACCA to give me a formal qualification but I’m ending up confused when my answers are different than the book and am beginning to get very frustrated with this as I have spent a lot of time on these questions and examples to get the answers given, only to find in some cases it’s not possible.
Perhaps I am wrong and completely missed something in the question but someone please show me the correct answer so I can figure out where I’m going wrong.Thank you
ok another query on this chapter.
Example 3
Question in chapter gives additional assets as 10k, so obviously I work out the example before I look at the answer.
In the answer it has 20k as the additional assets which completely changes the answer.
Can you please note this error as this changes the answer and obviously I will not be the only one wondering why I got a different answer.Example 2: The current version of the notes has 50% mark-up in both question and answer. I don’t know whether you are working from old notes (and I don’t know whether this has been changed) or whether you’ve misread.
We have made an error in the question as I think the credit sales there should be $55,000, not 70,000. I think that then the question works.
Example 3: The question should say additional non-current assets of $20,000 were bought. I think that then the question works.
Our apologies for these errors and thank you for bringing them to our attention. We will change the material as soon as we can.
Regards.
Hi
Thanks for that but I’ve just downloaded the FA notes for June 2015 as they still have 30% markup in the question so what notes are you referring to that have 50% in both question & answer so I can download & work on the correct ones?
Regards
Adrienne
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