Question

Annie is a sole trader who does not keep full accounting records. The following details relate to
her transactions with credit customers and suppliers for the year ended 30 June 20X6
S
Trade receivables, 1 July 20X5
Trade payables, 1 July 20X5
Cash received from customers
Cash paid to suppliers
Discounts allowed
Discounts received
Contra between payables and receivables ledgers
Trade receivables, 30 June 20X6
Trade payables, 30 June 20X6
130,000
60.000
686,400
302.800
1,400
2.960
2.000
181.000
84.000
What figure should appear for purchases in Annie's statement of profit or loss for the year
ended 30 June 20x6? A $325,840
B $330,200
C $331,760
D $327,760​

Answer 1

Answer:

sorry I can't understand what you write

please write in proper way

Answer 2

To determine the purchases figure for Annie's statement of profit or loss for the year ended 30 June 20X6, we can use the following formula:

Purchases = Cost of Goods Sold + Closing Inventory - Opening Inventory

We have been given the following information:

Trade payables, 1 July 20X5 = $60,000

Cash paid to suppliers = $302,800

Contra between the payables and the receivables ledgers = $2,000

Trade payables, 30 June 20X6 = $84,000

To calculate the Cost of Goods Sold, we can use the formula:

Cost of goods sold = Net Sales - Gross Profit

We do not have information on Gross Profit or Net Sales, so we cannot calculate the Cost of Goods Sold directly.

However, we can use an alternative method to calculate the purchases figure by considering the change in trade payables during the year:

Purchases = Opening Trade Payables + Cash Paid to Suppliers - Closing Trade Payables

Purchases = $60,000 + $302,800 - $84,000

Purchases = $278,800

Therefore, the figure that should appear for purchases in Annie's statement of profit or loss for the year ended 30 June 20X6 option is D) $327,760.

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