ble. However, whatever the quality of your stock records, all businesses must retain evidence of their transactions. As a result, you could have a record of what was purchased, when, from whom, and for how much, but you may well have no record at all of what was sold, when, to whom, or for how much - if all sales are for cash, your only record may be the till receipt for each transaction, and that frequently shows no more than the date and value of the sale. Review questions 29.1 From the following figures calculate the closing stock in trade that would be shown using FIFO, UN UFO, IN AVCO methods. Bought Sold March 100 at 16 each December 130 for 24 each September 220 at 19 each 29.2 For question 29.1 draw up the trading account for the year showing the gross profits that would have been reported using ) FIFO, UN LIFO, GIN) AVCO methods. 229.3A from the following figures calculate the closing stock-in-trade that would be shown using 10 FIFO (in) LIFO, WAVCO methods on a perpetual Inventory basis. Bought Sold January 120 at E16 each June 125 at 22 each April 80 at 18 each November 210 at 25 each October 150 at 19 each 29.4A Draw up trading accounts using each of the three methods from the details in question 29.3A. 29.5 The sixth formers at the Broadway School run a tuck shop business. They began trading on 1 December 20x9 and sell two types of chocolate bar, 'Break' and 'Brunch Their starting capital was a 200 loan from the School Fund. Transactions are for cash only. Each Break costs the sixth form 16p and each Brunch costs 12p. 25% is added to the cost to determine the selling price. Transactions during December are summarised as follows: December 6 Boughts boxes, each containing 48 bars, of Break; and 3 boxes, each containing 36 bars of Brunch December 20 The month's sales amounted to 200 Breaks and 90 Brunches. (-) Record the above transactions in the cash, purchases and sales accounts. All calculations must be shown. (b) on 20 December (the final day of term) a physical stocktaking showed 34 Break and 15 Brunch in stock. Using these figures calculate the value of the closing stock, and enter the amount in the stock account. Prepare a trading account for the tuck shop, calculating the gross profit/loss for the month of December 20X9. (d) Calculate the number of each item that should have been in stock. Explain why this informa tion should be a cause for concern. (Edexcel, London Examinations: GCSE) 1347