INTRODUCTION TO ACCOUNTING RATIOS

FINANCIAL ACCOUNTING SSS2 SECOND TERM              

WEEK 9 &10

INTRODUCTION TO ACCOUNTING RATIOS

Contents

(i).       Margin and Mark Up

           The ability to calculate margin and markup may be necessary to solve some incomplete record problems.

MAHEEN

Trading account for the year ended 31 Dec. 2003

                                                                                      N           N

          Sales (given)                                                                       84,000

          Less cost of sales

          Opening stock 1^st Jan (given)                                             9000

          Step 4 purchases (balance figure 3)                                    65000

          Step 3 Gods available for sales (balancing figure 2)              74000

          Less closing stock on 31 Dec. (given)                         11000         

Step 2 cost of sales (balancing fig 1)                                              63,000

          Step 1 gross profile (¹/₄ x N84,000)                                             …