osbourne book unit 15

meibaker

hi, i am stuck on question 2.4 of the text book
they ask u to prepare teh profit and loss a/c,but i can't seem to find the closing stock, please someone help me. thanks

Rinske

Based on the information given, I would guess 5,000.
On p 51 it says he normally maintains his stock at a constant level by purchasing goods in the month in which they are sold, with an exception that in November he purchases 50% of the goods he expects to sell in December in advance. in the given balance sheet the stock was 5,000, do I would expect that to remain the same in February.

meibaker

oh i see. many thank