Question 8
The following balances were extracted from the books of Banyant Agency as at 31/12/22.
Le
Machinery 120,000
Fixtures 4,000
Stock 1/1/22 55,000
Purchases 65,000
Discount received 3,000
Total expenses 48,000
Sales 190,000
Stock 31/12/22 35,000
From the information above, calculate:
(a) Total fixed asset;
(b) Average stock;
(c) Rate of stock turnover;
(d) Gross profit;
(e) Net profit.
Observation
Most candidates who attempted the question did well. However some lost few marks for using wrong currency symbol.
The expected responses to the question include: