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9 marksIncome Statements and Balance Sheets for Sole Traders

CSEC Principles of Accounts · January 2011 · Paper 2 · Question 6(a)(iv)

Collins' Smart Mart lost all stock and most records in a fire on March 31, 2010. Incomplete records of creditors, payments, cash purchases, sales banking, and opening stock are provided.

Prepare the Income Statement (Trading Account) for Collins' Smart Mart for the period ended March 31, 2010. Show clearly the value of the inventory (Closing Stock) lost in the fire on March 31, 2010.

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Other parts of this question

  1. 6(a)(i)Prepare the Creditors (Total) Account to calculate the amount of credit purchases for the period.[5 marks]
  2. 6(a)(ii)Calculate the total purchases figure for Collins' Smart Mart for the period January 1 to March 31, 2010. (Show all working clearly.)[2 marks]
  3. 6(a)(iii)Given that J. Collins normally operates at a gross profit margin of 20%, find the cost of sales for the period January 1 to March 31, 2010. (Show working.)[3 marks]
  4. 6(b)State the name given to the relationship between gross profit and cost of sales.[1 mark]

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