Accounting 9706 · AS & A Level · Preparation of financial statements

Preparation of financial statements — practice question

At the start of the financial year, inventory had a value of $\text{\$}15000$. Over the year, sales of $\text{\$}21000$ and purchases of $\text{\$}18000$ took place. Regrettably, every item of inventory was stolen on the final day of the financial year. Goods are marked up by $50\%$ to work out selling price. What is the cost of the stolen inventory?

  • A$\text{\$}7500$
  • B$\text{\$}11000$
  • C$\text{\$}19000$
  • D$\text{\$}22500$

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