What is the cost of sales of the company for the year ended 31st December 2018 (in 000)? O The inventory was counted on 31.12.18 and valued, at cost, at 72,000. Includod in this were some damagod goods which had cost 3,000 and which would normally be sold for 5,500. However, they were sold in a clearance sale in January 2019 for E1,000. (ii) A customer notified the company on 28.12. 18 that be was returning goods with the wrong specification for which he had been invoiced the sum of 16,000. The returmed goods were received into the shop on 30.12.18 on which date the accountant was notified and the returm was recorded in the accounting records. The goods had cost Santa ple 2,500 and were returned in good condition.

For the following questions use this Trial Balance The following balances have been extracted from the books of Santa plc for the year ended 31st December 2018, before any adjustments have been made. Dr Cr 000 000 Land 120 Buildings at cost 280 Buildings, accumulated depreciation at 1 January 2018 80 Delivery vans at cost 65 Delivery vans, accumulated depreciation at 1 January 2018 23 Inventory at 1 January 2018 74 Trade receivables 92 Provision for bad debts at 1 January 2018 5.6 Prepayments at 1 January 2018 3 Bank balance 7 Trade payables 23 10% debenture loan repayable in 2030 50 Ordinary share capital of 0.5 each 70 Share premium 10 Retained profits at 1 January 2018 101.4 Disposal proceeds 25 Sales revenue 1095 Purchases 621 Administrative expenses 96 Carriage-in 3 Distribution costs 109 Rent 21 Interim dividend paid 6 1490 1490