DUCTION TO FINANCIAL ACCOUNTING (ACC2001) TUTORIAL SHEET UNIT 1(b)-INCOMPLETE RECORDS Tutorial class 1. Billy Ocean is a trader in seafood. The firm uses a margin of 1/6. For the month of May 2017 his opening stock was 70,000, purchases as $250,000, and closing stock was $120,000. What as his sales? 2. The Blue Ray is a trader in home dcor items. The firm operates with a mark-up of 25% During the month of April 2017 opening stock was $80,000, and purchases as $300,000. Sales for the period was $350,000. At the end of the month a portion of his stock was stolen. The amount remaining was $30,000 a) What was the value of the closing stock? b) What portion of stock was stolen? 3. The Bayern is a trader in honey sticks. The firm operates with a mark-up of 20% Recent heavy rains partially damaged the stock of honey. The following details were available a. Data at start of the period Opening stock Debtors Creditors 34,000 47,350 22.250 b. Transactions recorded during the period Payments to credit suppliers 32,000 Cash purchases 42,050 Receipts from credit customers 27,000 Bad debts written off 3,750 Cash sales 83,000 Discounts allowed 2,600 Discount received 3,200 Stock taken for personal use 8,000 c. Data at close of the period Debtors Creditors Stock salvaged 21,000 20,000 13,350 Determine the following: a) The total sales and purchases b) The total value of the closing stock. c) The value of the stock that was destroyed 4. The West Lake is a retail trader in Black River. The firm has provided the following accounts details for 2016. Receipt from debtors Cashbook 55,000 Bal bid 45,000 Cash sales 60,000 Office expense 24,000 Investment income 22.500 Wages 30,000 Disposal of machinery 11.500 Rent 35,000 Bal c/d 106,000 Loan repayment 37,500 Payment to creditors 22.650 Rates 17,600 Loan interest 8.250 Cash purchases 35,000 255,000 255,000 List of balances Details Jan. 01 Dec. 31 Wages owing 4,500 6,000 Investment income owing 3,000 5,500 Stock 8.250 9.500 Creditors 4.100 6,750 Equipment (book value) 80.000 78,000 Machinery (book value) 95,000 75,000 Motor vehicle (book value) 40,000 36,000 Debtors 5.000 6.500 Office expenses prepaid 4,600 7.200 Rates owing 3,000 5,500 10% Loan 120,000 82,500 Additional notes: i. The machinery that was sold had a book value of 15,000 ii. Discounts of 3,450 were allowed to credit customers Required: a) How much was the capital at January 1, 2016? b) Determine the amount for total sales, and total purchases. c) How much was wages, office expense, and rates for the year? d) How much was investment income for the year? e) What is the gain or loss on the machinery disposed? f) How much is to be charged as depreciation for the equipment, machinery, and motor vehicle for the year? g) Prepare the trial balance as at December 31, 2016. (HOMEWORK)