Analytics and Inferring

Numbers
 What was the value of Closing
inventory
A business makes all of its sales at a mark up of
25%. During the year sales totaled Rs98,000 and
purchases were Rs71,000. The inventory at the
start of the year was valued at Rs. 10,200
 What are Sales for the Year
• A business has following assets and liabilities at the
start (July 2017) and end of the year(June 2018)
• At beginning, Trade Receivables are 6,100 and Trade
payables are 3,900
• At end, Trade Receivables are 7,400 and Trade payables
are 3,500
• Bankings for the year were 78,500
• Payments to suppliers for the year were 49,700
• Owners banks her takings from till each month but
before doing so in June 2018 she took Rs5,000
What is Yearly Sales and Closing
Inventory
Jan 1, 2018 December 31, 2018
(Rs. 000) (Rs 000)
Trade Receivables 5,500 6,100
Trade payables 2,800 3,500
Inventory 10,400
Bank balance 1,620 4,520

• Taking are banked each week but before doing so Rs 50,000 is paid to employees
and owners takes 30,000
• Business operates for 50 weeks
• The till always has a cash float of Rs100,000
• Sales of business are both cash and credit sales and all are made at 40% mark up.
• Bankings during the year Rs 65.4 million
• Payments to suppliers during the years from banks Rs 42.8 million
• Expenses paid during the year from bank Rs. 9.3 million
• Living expenses paid for the year from bank Rs. 10.4 million
What is Allowance Adjustment
• At December 31, 2016 balance sheet has following balances.
– Accounts receivable 960,000
– Less: Allowance for doubtful accounts 80,000
• During 2017, the company had the following transactions related to
receivables.
– Sales on account 3,200,000
– Sales returns and allowances 50,000
– Collections of accounts receivable 2,810,000
– Write-offs of accounts receivable deemed uncollectible 90,000
– Recovery of bad debts previously written off as uncollectible
24,000
• Estimated provision for doubtful debts as at 31-12-2017 115,000