All the sales made by a retailer are for cash , and her sales prices are fixed by doubling cost. Details recorded of her transactions for September 2006 are as follows.
1 sept inventories $40,000
30thsept purchases for month $60,000
cash banked for sales for month $95000
inventories $50,000
Which two of the following conclusions could separately be drawn from this information?
1. $5000 cash has been stolen from the sales revenue prior to banking.
2. Goods costing $5000 has been stolen
3. Goods costing $2,500 have been stolen
4. Some good costing $2,500 had been sold at cost price.
The answer is 1 and 3 sir..i understand the fact that oi + p -ci = cos
so cos is 50,000.. i dont get how at the back they have given 100,000 (50,000X2)
dont get the logic ? 50,000-95000=45000 not 5000? what if i use cos 95000? so the closing inventory is coming 50000
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Goods costing
7y ago#1The cost of sales = opening inventory plus purchases less closing inventories.
So it equals 40,000 + 60,000 - 50,000 = 50,000.
The sales price is double the cost, and so is 2 x 50,000 = 100,000.
Cash banked for sales has nothing at all to do with the cost!
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