2020 JYSS 3E POA EOY P2 Q5

2020 JYSS 3E POA EOY P2 Q5

5 The following inventory account has been extracted from the books of Lilian for the year ended 30 April 2020:

Inventory account

      Date

Particulars 

Dr $

Cr $

Balance $

2019

    

May 1

Balance b/d

  

29 500 Dr

       14

Cash at bank

26 600

 

56 100 Dr

Nov 18

Trade payable

42 400

 

98 500 Dr

        26

Trade payable

 

1 200

97 300 Dr

2020

    

Jan 12

Trade payable

58 450

 

155 750 Dr

Mar 20

Cost of sales

 

97 300

58 450 Dr

Apr 22

Cost of sales

20 800

 

79 250 Dr

       30

Impairment loss on inventory

 

4 000

75 250 Dr

     

May 1

Balance b/d

  

75 250 Dr

REQUIRED

Interpret each of the entries in the inventory account:

[6]

a. 14 May 2019

b. 20 Mar 2020

c. 22 April 2020

d. If the net sales revenue was $175 000, prepare an extract of the statement of financial performance for the year ended 30 April 2020.

[3]

e. If insurance was bought for the goods and the business will receive full claim in May 2020. Write the journal entry to record the adjustment to be made on 30 April 2020.

[2]

[TOTAL 11]

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On 14 May 2019, Lilian bought inventory/goods $26 600 and paid by cheque

On 20 March 2020, Lilian sold inventory/goods costing of $97 300

On 22 April 2020, Lilian’s customer returned inventory/goods sold, costing $20 800.

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