Cambridge IGCSE and O Level Accounting

Worksheet 3.1 answers

1 Trading section Profit and loss section
Revenue ✓
Purchases ✓
Sales returns ✓
Purchases returns ✓
Wages and salaries ✓
Rent and rates ✓
General expenses ✓
Opening inventory ✓
Closing inventory ✓

2
Tebogo
Income statement (trading section) for the year ended 31 January 20–8
$ $ $
Revenue 38 000
1
Less sales returns 1 860 36 140
Less Cost of sales
  Opening inventory 2 040
  Purchases 26 500
   Less Purchases returns 540
25 960
   Less Goods for own use 365
25 595
  Carriage inwards 1 310 26 905
28 945
   Less Closing inventory 1 570 27 375
Gross profit 8 765

3 Cost of sales = Opening inventory + Purchases – Closing inventory

Revenue – Cost of sales = Gross profit

Profit for the year = Gross profit – Expenses

© Cambridge University Press 2018

Cambridge IGCSE and O Level Accounting

4
Angi
Income statement for the year ended 30 April 20-6
$ $ $
Revenue 54 000
Less Sales returns 1 620 52 380

Less Cost of sales

  Opening inventory 2 970
  Purchases 28 500
   Less Purchases returns 520
27 980
   Less Goods for own use 635
27 345
  Carriage inwards 1 210 28 555
31 525
   Less Closing inventory 1 480 30 045
Gross profit 22 335
Less Wages 8 300
2
  Rent 8 600
  Motor expenses 3 125
  General expenses 1 150 21 175
Profit for the year 1 160

5 Goods taken for personal use reduce the goods available for sale and
must be deducted from the purchases. These goods should not be
deducted from the closing inventory as that represents the value of
the goods in stock on that particular date.

© Cambridge University Press 2018