1
Using the information in Review Question 33.13, prepare P Maclaran’s balance sheet as
at 31 December 2008.
2
A business prepares its financial statements annually to 30 April and stocktaking is carried
out on the next following weekend. In 2005, 30 April was a Wednesday. Stock was taken on 3 May
and the stock actually on the premises on that date had a value at cost of £124,620.
The following additional information is ascertained:
(i
) The cash and credit sales totalled £2,300 during the period 1–3 May.
(ii
) Purchases recorded during the period 1–3 May amounted to £1,510 but, of this amount, goods
to the value of £530 were not received until after 3 May.
(iii
) Sales returns during 1–3 May amounted to £220.
(iv) The average ratio of gross profit to sales is 20%.
(v) Goods in stock at 30 April and included in stocktaking on 3 May at £300 were obsolete and
valueless.
Required:
Ascertain the value of the stock on 30 April 2005 for inclusion in the financial statements.