Mr. Umezurika Obi average stock, that is, the average of opening and closing stock was N250,000. His closing stock as at 31st December 2017 was valued at N270,000. During the year, he turned over his stock six times and made on the whole a gross profit of 30% on turn over.
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Additional Information:
(a)??? Debtors for the year ???????????? N99,350
(b)?? Creditors?????????? ???????????? N850,000
(c)??? Cash at bank ???? ???????????? N600,000
(d)?? Motor vehicles at cost ???????????? N770,000; Land and building at cost N950,000; Fitting at cost N100,000; Petty cash balance N100,000; Depreciation:
-??????? Motor Vehicles 5% at cost
-??????? Land building 10% at cost
(e)??? Capital at start N2, 230,000; Drawing for the period was N450,000.
(f)??? Value of stock at closed was N93, 364.28
(g)?? Premises at cost N303, 000. This depreciate at 2.5%
(h)?? If his total expenses amounted to 12% on turnover,
