Day: November 4, 2021

A company sells goods on sale or return at a mark up of 25 %.

At the Balance Sheet date the following information is available:

•goods in warehouse £300,000 (cost)

•goods sent on sale or return £200,000 (at invoice price)

What will be the value of closing stock in the company accounts?

Select ONE answer:

1. £300,000
2. £450,000
3. £460,000
4. £500,000

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct ==> £200k / 1.25 + £300K
4. Not correct

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