Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

Rahul runs a retail business and has not kept complete accounting records. He can provide the following details for the financial year finishing on 31 January 2024.
(a)[4]

Calculate the revenue for the year ending 31 January 2024.

(b)[5]

Calculate Rahul’s cash drawings for the year ending 31 January 2024.

(c)[2]

State two ways Rahul will benefit from the accountant’s suggestions.

(d)[4]

Explain two possible reasons why Rahul may choose not to accept the accountant’s suggestions.

Worked solution & mark scheme

This 15-mark question has a full step-by-step worked solution and mark scheme. One marking point: Cost of sales is found from $9 \times$ average inventory $20 600 = $185 400

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