The answer must include an analysis of the pertinent of the relevant legislation, rulings and the relevant case law and give reasons?

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Mohan sells computers in a shop in Croydon which is his own business. He has a range of computers and accessories available for customers to purchase and was happy to be open whenever the Covid restrictions were relaxed. Customers pay at the counter before they are allowed to take their purchases. His sales for the year ending 30th June 2021 were $2,500,000 During the year ended 30th June 2021 purchases of computers were $1,500,000 and at 30th June 2021 stock on hand was $600,000. His closing stock for the year ended 30th June 2020 was $300,000. Explain the rules applicable to trading stock and calculate the income he should declare in relation to the facts as stated above for the year ending 30th June 2021 Mohan sells computers in a shop in Croydon which is his own business. He has a range of computers and accessories available for customers to purchase and was happy to be open whenever the Covid restrictions were relaxed. Customers pay at the counter before they are allowed to take their purchases. His sales for the year ending 30th June 2021 were $2,500,000 During the year ended 30th June 2021 purchases of computers were $1,500,000 and at 30th June 2021 stock on hand was $600,000. His closing stock for the year ended 30th June 2020 was $300,000. Explain the rules applicable to trading stock and calculate the income he should declare in relation to the facts as stated above for the year ending 30th June 2021

Answer rating: 100% (QA)

The rules applicable to trading stock determine how businesses should account for their inventory fo... View the full answer