K_ 9.5 Pritesh started business on 1 January 2005. The following relates to year ended 31 December 2005.

Trade creditors at 31 December 2005

16,000

Trade debtors at 31 December 2005

12,000

Cash received from debtors

32,000

Cash paid to creditors

28,000

Mark-up on cost

30%

Calculate the closing stock at 31 December 2005.

(8 marks) 9.6Devan had the following transactions relating to his business.

Cash received from debtors

18,500

Due from debtors 1/1/2004

1,000

Opening stock

2,000

Closing stock

500

Due to suppliers 1/1/2004

750

Due to suppliers 31/12/2004

300

Cash paid to suppliers

1,200

Calculate:

(i)Sales

A19,500C18,500

B17,500DNone of the above

(ii)Purchases

A2,250C150

B750 DNone of the above

(iii)Gross profit

A15,250C16,250

B750 D18,250

(iv)Gross profit as % of sales

A92% C82%

B93% D87%

(v)Gross profit as % of cost

A 677%C 114% B 14%D 87%

(10 marks)