O-LevelAccountingAccounting procedures7707/11 · May/June 2022 · Q311 Mark

Jerry started his business on 1 January 2022 with no opening inventory. On 19 April 2022, a fire destroyed all his inventory. Jerry provided the following information for the period 1 January 2022 to 19 April 2022. Revenue: $30 200 Purchases: $25600 Gross margin: 25% What was the value of inventory destroyed on 19 April 2022?

A$1800

B$2950

C$3450

D$5750

✓ Correct answer

B: $2950

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2022 Paper 1 Variant 1, question 31.

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