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 | 97 300 | 58 450 Dr | |||
Apr 22 | 20 800 | 79 250 Dr | |||
30 | 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]
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.