Accounts o452 IGCSE help please!

[19islandprincess96]

I am having trouble finding the closing stock in the the trading and profit and loss account in IGCSE Accounts paper of October november 2010
its question number one...please help if u can!

 

[Kokeeto]

They have said that the mark up = 25 %
25% ia 1/4
There is a rule that if the mark up is y/x , then the margin is y/x+y
Therefore: if mark-up is 1/4 , then the margin is 1/(4+1) which is 20%
Margin is Gross Profit/ Sales
You have the margin percentage, and the sales figure >>> therefore you can find the Gross Profit:
GP/216000 = 20%
GP/216000 = 1/5
If you make cross-multiplication, then:
5(GP) = 216000
GP = 43200
If you have GP and sales, you can find cost of goods sold by :
Sales - GP
216000 - 43200
= 172800

To find closing stock: (Figures in brackets are negative)
Cost of sales =
Opening inventory 19 500
Purchases 176 000
Less Goods for own use (1 900)
Less Closing inventory ( X)
-----------
172800

>>>>>>>>>>>>>>>> 19500 + 176000 - 1900 - X = 172800
-X = 172800 - 19500 - 176000 + 1900
-X = -20800
X = 20800
FINALLY!!
Hope that helped you!
Good Luck

 

[19islandprincess96]

thank u soooo much!!
I really didn't know that rule and thats why I lost marks in my school exam too!
U really helped me.
Thank you very much.
May Allah Bless you and make u pass all your exams with flying colours!

 

[Kokeeto]

No problem, and if you need help in any other subject please don't hesitate to ask me. I am ready to help.
And thanks a lot for your prayers. I wish you keep me in your prayers, and good luck to you too.

 

[Igcian3]

Kokeeto » Many thaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaankss