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sharron123
sharron123 Registered Posts: 4 New contributor 🐸
in AAT Level 3 (Level 6 in Scotland)
Hi ,can any one help with a few homework questions
1/A firm had a flood destroying all stock.Opening stock £1,000
sales £10,000 purchases £8,000
mark-up 46%
I need to calculate the value of stock lost in flood?
Where do I start?

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  • Richard
    Richard Registered Posts: 373 Dedicated contributor 🦉
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    Opening stock + Purchases = Cost of stock available for sale (a)

    Sales - Gross Profit = Cost of sales (b)

    Therefore, a - b will give you the estimated closing stock, and as all the stock was destroyed, this will be your answer.
  • bevkes
    bevkes Registered Posts: 25 Regular contributor ⭐
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    Richard is correct, and i just wanted to put it in figures for you.......Are you sure that the 46% is the mark-up not the margin, because i can't really work it out if its the mark-up.:001_tt2:
  • sharron123
    sharron123 Registered Posts: 4 New contributor 🐸
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    hi ,
    Yes it was mark-up ,ive got the answers now and managed to work it through the answer was £215.00
    thanks
  • sharron123
    sharron123 Registered Posts: 4 New contributor 🐸
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    hi ,
    the answer was actually £2150.00
    sorry:001_smile:

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