Paper 2 · Financial statements - sole trader

Maria's opening inventory on 1 January 2015 was $54,400 and her closing inventory on 31 December 2015 was$ 35,200. Her credit purchases for the year were $364,800, and she made no cash purchases of goods for resale. Calculate her cost of sales for the year ended 31 December 2015.

Model answer

384000

Also accepted: $384,000, 384,000, $384000

Explanation: Cost of sales = Opening inventory

54,400 + Purchases

364,800 − Closing inventory

35,200 =

384,000.

Derived from ZIMSEC Accounting Paper 2, June 2018, Q1

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