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

Preparation of financial statements — practice question

A trader sells goods with a constant mark-up of $20\%$. The information below refers to the year ended 31 December. Inventory at 1 January $1\,780$ Inventory at 31 December $2\,100$ Purchases $23\,400$ Carriage inwards $700$ Carriage outwards $450$ Goods taken for own use (at selling price) $1\,800$ What was the value of cost of sales for the year ended 31 December?

  • A$20\,880$
  • B$21\,830$
  • C$22\,280$
  • D$22\,340$

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