This set practises every skill in incomplete records: missing credit sales, purchases from payables, margin and markup, profit from net assets, and evaluating the result. All businesses are fictional.
Cover the answer, write your full working on paper, then open the answer. Questions go from easier to harder. Question 9 combines several methods, so give it time.
Questions
1. Kedai Mawar had trade receivables of RM3,500 at the start of the year and RM4,100 at the end. Customers paid RM28,000. Find credit sales.
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Credit side: 28,000 + 4,100 = 32,100. Credit sales = 32,100 − 3,500 = RM28,600.
2. Bengkel Anggun owed suppliers RM5,200 at the start and RM6,100 at the end. It paid suppliers RM31,000. Find credit purchases.
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Debit side: 31,000 + 6,100 = 37,100. Credit purchases = 37,100 − 5,200 = RM31,900.
3. Opening receivables RM8,000; closing RM7,500; cash received RM64,000; discount allowed RM900; irrecoverable debts written off RM1,100. Find credit sales.
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Credit side: 64,000 + 900 + 1,100 + 7,500 = 73,500. Credit sales = 73,500 − 8,000 = RM65,500.
4. Opening payables RM7,400; closing RM6,800; payments RM52,300; discount received RM600; returns outwards RM900. Find credit purchases.
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Debit side: 52,300 + 600 + 900 + 6,800 = 60,600. Credit purchases = 60,600 − 7,400 = RM53,200.
5. A shop’s cost of sales is RM24,000 and it adds a markup of 40% on cost. Find sales and gross profit.
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Sales = 24,000 × 1.40 = RM33,600. Gross profit = 33,600 − 24,000 = RM9,600. Check: 9,600 / 24,000 = 40%.
6. Sales are RM45,000 and the gross margin is 20%. Find cost of sales and the markup on cost.
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Gross profit = 45,000 × 0.20 = 9,000. Cost of sales = 45,000 − 9,000 = RM36,000. Markup = 9,000 / 36,000 = 25%.
7. A fire destroyed the closing inventory of Kedai Cahaya. Opening inventory was RM6,000, purchases RM40,000 and sales RM52,000. Goods are sold at a markup of 30% on cost. Find the cost of the inventory lost.
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Cost of sales = 52,000 / 1.30 = 40,000. Goods available = 6,000 + 40,000 = 46,000. Inventory lost = 46,000 − 40,000 = RM6,000.
Check: 40,000 × 1.30 = 52,000, which matches the sales figure.
8. Hana runs a stall. At the start her assets were RM35,000 and liabilities RM8,000. At the end, assets were RM46,000 and liabilities RM9,500. She drew RM10,000 and paid RM4,000 of new capital into the business. Find her profit.
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Opening capital = 35,000 − 8,000 = 27,000. Closing capital = 46,000 − 9,500 = 36,500.
Profit = 36,500 − 27,000 − 4,000 + 10,000 = RM15,500.
Check: 27,000 + 15,500 + 4,000 − 10,000 = 36,500.
9. Kedai Pakaian Seroja has no sales or purchase records. The owner provides:
- Trade receivables: RM6,000 at the start, RM7,200 at the end
- Cash received from credit customers: RM46,800; discount allowed: RM600
- Cash sales: RM11,400
- Trade payables: RM5,000 at the start, RM6,500 at the end
- Payments to suppliers: RM41,500
- Inventory: RM8,000 at the start, RM9,000 at the end
- Expenses: RM12,500
Prepare total sales, purchases, cost of sales, gross profit and profit for the year.
Show answer
Credit sales: credit side 46,800 + 600 + 7,200 = 54,600; less opening 6,000 = 48,600. Total sales = 48,600 + 11,400 = RM60,000.
Purchases: debit side 41,500 + 6,500 = 48,000; less opening 5,000 = RM43,000.
Cost of sales: 8,000 + 43,000 − 9,000 = RM42,000.
Gross profit: 60,000 − 42,000 = RM18,000. Margin = 18,000 / 60,000 = 30%.
Profit: 18,000 − 12,500 = RM5,500.
10. In question 9 the owner says the shop normally earns a gross margin of 35%. Compare this with your result and give two possible reasons for the difference.
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Expected gross profit = 60,000 × 0.35 = 21,000. Calculated gross profit is 18,000, so the shortfall is RM3,000. Equivalent check: expected cost of sales is 39,000 against 42,000 calculated.
Possible reasons: closing inventory was undercounted, which raises cost of sales; some goods were sold at a discount; goods were taken for personal use without being recorded as drawings. The gap shows that the rebuilt figures are estimates until the cause is found.
11. A student works out credit sales for a business with opening receivables RM5,000, cash received RM50,000 and closing receivables RM7,000. The student writes 50,000 + 5,000 − 7,000 = 48,000. Identify the error and give the correct figure.
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The opening and closing balances are the wrong way round. The closing balance is a credit-side item, and the opening balance is deducted from the total.
Correct working: 50,000 + 7,000 = 57,000; 57,000 − 5,000 = RM52,000. Closing receivables rose, so credit sales must be larger than the cash received.
If you got these wrong
| What went wrong | Go to |
|---|---|
| Credit sales too low or too high, discounts or bad debts missed (questions 1, 3, 11) | Recover a missing credit-sales amount |
| Purchases confused with payments, or balances reversed (questions 2, 4) | Derive purchases from a payables movement |
| Wrong base for a percentage, or lost inventory (questions 5, 6, 7) | Use a stated margin or markup correctly |
| Profit equals the rise in net assets, or drawings not added back (question 8) | Infer profit from net-asset movements with drawings |
| Figures presented as certain, no comparison made (question 10) | Explain limits of reconstructed data |
Question 9 uses four methods, so a mistake there can come from any lesson. Check each figure against the corresponding line of working before deciding where the slip happened.
How to use your results
Write each error in the mistake log and retest queue with the question number and the reason. Rebuild the receivables and payables accounts in the double-entry and ledger trainer, and try the percentage-base explorer if margin and markup still blur.
If the same slip returns after a retest, a teacher watching you work can usually spot the habit quickly. Our online one-to-one Accounting tuition is designed for that kind of review.