Ravi is a wholesaler. His financial year ends on 31 March. He provided the following information for the year ended 31 March 2018.
$
Revenue
cash sales 8 750
credit sales 34 450
Purchases returns 950
Inventory at 1 April 2017 2 900
Mark-up 20%
Inventory at 31 March 2018 was 50% greater than that at 1 April 2017.
REQUIRED
Prepare the income statement (trading account section) for the year ended 31 March 2018 to calculate the purchases for the year.
Ravi
Income Statement (Trading Account section) for the year ended
31 March 2018