1
After stocktaking for the year ended 31 May 2009 had taken place, the closing stock of
Cobden Ltd was aggregated to a figure of £87,612.
During the course of the audit which followed, the undernoted facts were discovered:
(a) Some goods stored outside had been included at their normal cost price of £570. They had,
however, deteriorated and would require an estimated £120 to be spent to restore them to
their original condition, after which they could be sold for £800.
(b) Some goods had been damaged and were now unsaleable. They could, however, be sold
for £110 as spares after repairs estimated at £40 had been carried out. They had originally
cost £200.
(c) One stock sheet had been over-added by £126 and another under-added by £72.
(d) Cobden Ltd had received goods costing £2,010 during the last week of May 2009 but, because
the invoices did not arrive until June 2009, they have not been included in stock.
(e) A stock sheet total of £1,234 had been transferred to the summary sheet as £1,243.
(f
) Invoices totalling £638 arrived during the last week of May 2009 (and were included in
purchases and in creditors) but, because of transport delays, the goods did not arrive until
late June 2009 and were not included in closing stock.
(g) Portable generators on hire from another company at a charge of £347 were included, at this
figure, in stock.
(h) Free samples sent to Cobden Ltd by various suppliers had been included in stock at the catalogue
price of £63.
(i) Goods costing £418 sent to customers on a sale or return basis had been included in stock by
Cobden Ltd at their selling price, £602.
(
j) Goods sent on a sale or return basis to Cobden Ltd had been included in stock at the amount
payable (£267) if retained. No decision to retain had been made.
Required:
Using such of the above information as is relevant, prepare a schedule amending the stock figure
as at 31 May 2009. State your reason for each amendment or for not making an amendment.
(Association of Chartered Certified Accountants)