Question
James Harry is a trader who sells all of his goods at 25 per cent above cost. His records give the following information at 31
James Harry is a trader who sells all of his goods at 25 per cent above cost. His records give the following information at 31 December 2021:
Inventories at 1 January 2021 9,872
Inventories at 31 December 2021 12,620
Sales for the year 60,000
You are required to:
(a) ascertain the cost of goods sold
(b) calculate the cost of purchases during the year
(c) calculate the profit earned by Harry.
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
To ascertain the cost of goods sold COGS we need to calculate the change in inventory from t...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
