PDA

View Full Version : Accounting-HELP...QUERY?!?!?

Bint Yusuf
17-12-07, 11:35 AM
If the revenue is : 4,448

Opening Stock: 1,562

Purchases: 2,942

The closing stock can't be 600,000 can it?

Seems ridiculous, I think my lecturer got confused with that figure for the land re-valuation as 600,000 which he also stated.

What should I do? :confused:
al_islam
17-12-07, 11:36 AM
Whats the calculation ?
Bint Yusuf
17-12-07, 11:39 AM
(Opening Stock1562+Purchases2942)-Closing Stock600,000

Revenue4448-Closing Stock 600,000=Gross Profit

I think he's done an error on the coursework but not sure.
al_islam
17-12-07, 11:42 AM
(Opening Stock+Purchases)-Closing Stock

Revenue-Clsong Stock=Gross Profit

I think he's done an error on the coursework but not sure.

(1,562 + 2,942) - (fig 4 Clsoing Stock ???)

4448 - clsing stock

= ??

Could he mean 600

seems like simple maths error !!
Bint Yusuf
17-12-07, 11:47 AM
I think he was meant to put another figure there.


Let me show you again what I mean. We have to prepare Income Statement which isn't really hard.

Info provided:

Sales all on account 4,448
Inventory at Cost at 01.04.06 1,562
Purchases 2,942


He then tells us that the closing inventory at 31.03.07 is 600,000.

We then have to prepare the income statement, begginning bit.

It seems impossible that the closing inventory can be 600,000 :confused:
al_islam
17-12-07, 11:47 AM
Well If openeing stock = 1562 then how can closing stock be 600,000 ????

Jus email him and ask.
Bint Yusuf
17-12-07, 11:49 AM
Well If openeing stock = 1562 then how can closing stock be 600,000 ????

Jus email him and ask.

Yeh I thought so lol.

Ok jazakAllahu Khayr.
al_islam
17-12-07, 11:53 AM
Yeh I thought so lol.

Ok jazakAllahu Khayr.

BRK, not a problem

heres wat i did, jus for fun:

1562 + 2942 = 4504

Therefore if sales = 4448

Profit = -56
(MINUS 56 !!!)
Bint Yusuf
17-12-07, 11:56 AM
BRK, not a problem

heres wat i did, jus for fun:

1562 + 2942 = 4504

Therefore if sales = 4448

Profit = -56
(MINUS 56 !!!)


yup i already got that...:D
al_islam
17-12-07, 11:57 AM
yup i already got that...:D

So where does closing stock come in ?
Abu Mu'adh
17-12-07, 12:02 PM
Salaam

You need to treat the opening stock, purchases and closing stock seperately known as cost of sales.

The figures are correct

So Sales/Revenue = 4448

less cost of sales;

Opening stock 1562
plus Purchases 2942
less Closing Stocks (6000)

= (1496)

Gross Profit therefore = 4448-1496 = 2952
Bint Yusuf
17-12-07, 12:03 PM
opening stock + purchases= closing stock
1,562 + 2,942 = 4,504
Bint Yusuf
17-12-07, 12:04 PM
Salaam

You need to treat the opening stock, purchases and closing stock seperately known as cost of sales.

The figures are correct

So Sales/Revenue = 4448

less cost of sales;

Opening stock 1562
plus Purchases 2942
less Closing Stocks (6000)

= (1496)

Gross Profit therefore = 4448-1496 = 2952


OHHH YEAAAAH I FORGOT!!!

but my lecturer has put closing stock as 600,000, when i guess he means 6000? how did u get 6000 though?
al_islam
17-12-07, 12:10 PM
OHHH YEAAAAH I FORGOT!!!

but my lecturer has put closing stock as 600,000, when i guess he means 6000? how did u get 6000 though?

BTW, ive never studied accounting...but seemed like maths to me.

Well good luck anyways !!
Bint Yusuf
17-12-07, 12:11 PM
BTW, ive never studied accounting...but seemed like maths to me.

Well good luck anyways !!

oh ok. dnt wrry i got it and he did an error so e-mailed him.


u cudda fooled me ithought u was an accounting student lol or an accountant. :up:
Abu Mu'adh
17-12-07, 12:11 PM
OHHH YEAAAAH I FORGOT!!!

but my lecturer has put closing stock as 600,000, when i guess he means 6000? how did u get 6000 though?


Salaam he meant 6,000,000

I'm assuming the figures are in millions, so he has removed the last 3 0's from each figure. 6,000,000 = 6,000, similarly the other figures i'm assuming are in millions too 1,562,000 =1,562 and so forth.
al_islam
17-12-07, 12:12 PM
oh ok. dnt wrry i got it and he did an error so e-mailed him.


u cudda fooled me ithought u was an accounting student lol or an accountant. :up:

Accountant...lol....no ways

I do the sciences at Uni, but ive always liked maths and did it upto A-level maths !!
Bint Yusuf
17-12-07, 12:15 PM
Salaam he meant 6,000,000

I'm assuming the figures are in millions, so he has removed the last 3 0's from each figure. 6,000,000 = 6,000, similarly the other figures i'm assuming are in millions too 1,562,000 =1,562 and so forth.


oh okay. jazakAllahu Khayr

Accountant...lol....no ways

I do the sciences at Uni, but ive always liked maths and did it upto A-level maths !!

Lol. ohhh ok. mashAllah.