9.

Inventory
Balance 84 600 Cost of Sales (C5) 267 000
Purchases 1/3 to 30/6 252 000 Purchases returns1/3-30 23 400
Sales returns1/3 to 30/6 (C3) 28 500 Purchases returns1/7-4/7 250 (287,5*100/115)
Sales returns 1 to 4 July (C4) 440 Donations 6 600 (9487,5 x 100/143,75)
Inventory loss 52 690
Balance (C1) 15 600
365 540 365 540

Calculation 1
Inventory on hand 4 March 20.19
Marked price Cost
Inventory on hand R22 425,00 15 600 (22425 x 100/143,75)
15 600
Calculation 2
Relationship between Cost GP and SP Sale
CP 100,000 100 100
GP 25,000 25 10
SP 125,000 125 110
VAT 15% 18,750 16,5
143,750 126,5
Calculation 3
Sales returns (At SP excl VAT) 35 625
Calculation of sales returns at Cost 28 500 (35625X 100/125)

Calculation 4
Returns in 632,5
Returns in excluding at cost 440 (632,5x100/143,75)

Calculation 5 Cost of sales

Calculation of cost of sales
Total sales from 1 March to 30 June 315 700
Less: Sales at discounted selling price ex -13 200 (15180*100/115)
Total sales from 1 March to 30 June
excluding vat at normal SP 302 500
Cost of sales of sales at normal mark-up 242000
Cost of sales at discounted price 12 000 (15180 x 100/126,5) or (13200x100/110)
Cost of sales 1-4 June 18687,5 13 000 (18687,5 x 100/143,75) (6612,50+12075)
Total cost of sales 267 000

Calculation 6
Theoretical inventory
Actual inventory on hand 15 600
Inventory loss 52 690
Inventory on hand was there no loss 68 290

Insured for 60 000

Amount from insurance company = 60 000 x 52 690 6 396

68 290
Incl VAT VAT
= 46 294 53 238 6 944

Dr Insurance company 53 238

Dr Loss on inventory / COS 6 396
Cr Output VAT 6 944
Cr Inventory 52 690