Accounting Test Question SWO No. 1 On Stock Loss

November 27th, 2006 Comments off
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Accounting Test Question SWO No 1:

Question A:

Wintner Stores, whose financial year ends on 31 March, took stock on 26 March 2006. The stock on that date was valued at cost $64,670. Wintner added 25% to cost to obtain the selling price in the year ended 31 March 2006

Between 26 March and 31 March 2006, the following transactions took place:

 

$

Goods purchased

2,830

Credit sales

2,120

Cash sales

1,320

Goods returned by customers, taken back into stock

180

Goods, purchased prior to 26 Mar 2006 returned to supplier

450

 

Required:

(i)         prepare a statement showing the adjusted value of Wintner’s tock at 31 March 2006 ( 10 marks)

 

(ii)        if at a latter date, Wintner Stores learned that an item of stock purchased for $3,000 now had a realizable value of $2,500 how would this affect a subsequent stock valuation? ( 3 marks)

 

Question B:

Summer’s business premises were broken into on 20 June 2006. Damage to the premises was $4,600 and stock was stolen. Records showed a stock of $68,200 (at cost) at 1 April 2006 and purchases of $184,300 at cost during the period 1 April – 20 June 2006. Sales during the period 1 April-20 June were $252,800.

The mark-up on cost of goods for sale is 33 1/3%

A physical stocktaking on 21 June 2006 showed that the goods remaining after the theft, valued at cost were $12,600.

The insurance policy covered Summer for both loss of stock and damage to premises though Summer had agreed to pay the first $500 of damage to premises.

Required:

Prepare a statement showing the calculation for the insurance claim which Summer would submit (12 marks)

 

[ Refer Answer ]

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Financial Accounting

 
 

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