Financial Accounting II question

Wanabidii is a sole trader in a local market. He made a mistake while taking stock at the end of year 2017 and 2018. In the year 2017 the stock had been undervalued by ksh 90 000 and overvalued by ksh 270 000 in 2018. The following figures were extracted using the above stated valuations (All figures are in khs. 000

Year 2 017 2 018 2 019

Opening inventory 900 1 800 2 520

Purchases 6 300 7 740 6 930

Less: closing inventory (1 800) (2 520) (2 070)

Cost of sales 5 400 7 020 7 380

Sales 8 100 11 250 10 800

Gross profit 2 700 4 230 3 420

Required:

1. To calculate the correct figures of gross profit for each of the three years affected by the errors in inventory [5 marks]
2. Using the correct figures in the revised trading accounts, calculate for each year

1. The percentage of gross profit to sales [3 marks]
2. The rate of turnover of inventory [3 marks]