Bob is a sole trader who does not maintain complete accounting records. He has listed his assets and liabilities as shown on the right, and has prepared, as shown below, a summary of bank and cash transactions. He has taken away goods from inventory for personal use but has not kept any record of their costs. Bob always fixes his selling price by adding 50% to the buying price of goods. There is no wastage.

Required:

(a) Prepare Bob’s Statement of income for the year ended 30 September 2011. 

(b) Calculate the cost of goods taken by Bob.

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Asset/liability 30 September Inventory Receivables Prepaid Payables Accruals 2010 4 38,000 119,200 2,400 68,100 3,900 2011 4 46,000 125,000 2,600 77,100 4,600