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Zorluk: OrtaPreparation of Final Accounts from Incomplete Records

A trader maintaining single-entry accounting records provided the following financial details for the year ended 31 December 2025:

- Opening inventory: ₦18,000₦18,000
- Closing inventory: ₦24,000₦24,000
- Cash paid to creditors: ₦145,000₦145,000
- Opening trade creditors: ₦22,000₦22,000
- Closing trade creditors: ₦28,000₦28,000
- Discount received: ₦5,000₦5,000

What is the Cost of Goods Sold for the business for the year?

Cevap: 150000 ₦

Cevap

The Cost of Goods Sold for the year is ₦150,000₦150,000.
To determine the Cost of Goods Sold, first reconstruct the Creditors Control Account to calculate total purchases: Purchases = Cash Paid (₦145,000₦145,000) + Discount Received (₦5,000₦5,000) + Closing Creditors (₦28,000₦28,000) - Opening Creditors (₦22,000₦22,000) = ₦156,000₦156,000. Then apply the Trading Account formula: Cost of Goods Sold = Opening Inventory (₦18,000₦18,000) + Purchases (₦156,000₦156,000) - Closing Inventory (₦24,000₦24,000) = ₦150,000₦150,000.

Adım Adım Çözüm

1
Calculate total purchases by reconstructing the Purchases Ledger Control Account.
Total Purchases = ₦145,000+₦5,000+₦28,000−₦22,000=₦156,000₦145,000 + ₦5,000 + ₦28,000 - ₦22,000 = ₦156,000.
Credit purchases increase the trade creditors liability, whereas cash payments, discounts received, and closing balances offset or define the total liability balance.
2
Calculate the Cost of Goods Sold using the standard Trading Account formula.
Cost of Goods Sold = ₦18,000+₦156,000−₦24,000=₦150,000₦18,000 + ₦156,000 - ₦24,000 = ₦150,000.
Cost of Goods Sold measures the direct cost of inventory available and sold during the trading period.

Anahtar Kavram

Conversion of incomplete records to final accounts using control accounts and trading account equations
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Konular

Preparation of Final Accounts from Incomplete Records

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