A business ends its financial year on 31 December. The stock was not counted until 10 January when it was found to be £104,000 at cost. The following transactions took place from 1 to 10 January.
- stock purchased — £16,000
- stock sold at selling price — £15,000
Stock is sold at a mark-up of 25 %.
What was the value of stock at 31 December?
Select ONE answer:
- £99,250
- £100,000
- £108,000
- £108,750
Show your workings to arrive at your answer, and explain and justify your reasons:
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This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 2
- Not correct
- Correct ==> £104,000 – £16,000 + (£15,000 / 1.25)
- Not correct
- Not correct
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