The table shows information for a business at 31 March in Year 1.

$
inventory 16 100
trade payables 5200
other payables 2000

The information excludes the purchase of $3700 of goods. These goods were delivered on 31 March Year 1, but the invoice states that legal title to the goods does not pass until payment is received.

Which values should appear in the statement of financial position on 31 March Year 1?

Q: What topic does this question test?

This question tests Inventory Valuation in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Q: Which exam paper is this question from?

This question appeared in the Cambridge A-Level Accounting May/June 2015 examination, Paper 1 Variant 2 (9706_s15_qp_12.pdf).

Question

The table shows information for a business at 31 March in Year 1.

$ 
inventory      16 100
trade payables 5200
other payables 2000

The information excludes the purchase of $3700 of goods. These goods were delivered on 31 March Year 1, but the invoice states that legal title to the goods does not pass until payment is received.

Which values should appear in the statement of financial position on 31 March Year 1?

Oracle Prep · Accepted Answer

The correct answer is D: 19800        8900           2000.

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