Question
Khalid is a furniture wholesaler. Financial year ends on 30 Sept All purchases and sales made on credit terms Khalid does not maintain full set
Khalid is a furniture wholesaler. Financial year ends on 30 Sept
All purchases and sales made on credit terms
Khalid does not maintain full set of records only the following :
On 1 OCT 2017
Inventory 3100
Trade receivable 4620
During the year ended 30 Sept 2018
Cheque received from trade receivable 47970
Discount allowed 1230
Bad debt written off 115
Total purchases 39200
On 30 Sept 2018
Trade receivable 3305
After warehouse closed on 30 Sept a fire broke out and inventory distroyed. Undamaged inventory valued at 1500
Profit mark up is 25%
CALCULATE DAMAGED INVENTORY VALUE AND GROSS PROFIT so that INCOME STATEMENT can be completed.
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