AFA_Lec_5 - AdvancedFinancial Accounting FIN611...

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    Advanced Financial  Accounting FIN-611   Mian Ahmad Farhan  Lecture-5 Single Entry & Accounting for Non- Profit organizations 
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    Cost Structure  Markup % of gross profit on cost of goods sold  Margin  % of gross profit on sales
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    Markup Sales  xxx 125% Less Cost xxx 100% Gross profit xxx   25%
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    Margin Sales  xxx 100% Less Cost xxx 75% Gross profit xxx   25%
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    Debtor’s Account  Opening balance  Credit sales xxx xxx Cash received from  debtors  Closing balance  ? ? xxx xxx
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    Question  Cash Book   Cash sales   500 Receipt Amount Payment  Amount
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    Question   Opening balance  Credit sales 300 ? Cash received from  debtors  Closing balance  1,200 ? Cost of goods sold is Rs. 2,000  Gross Profit is 20% of cost of goods sold   Debtors Account 
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    Solution  Cost of goods sold (COGS) = Rs. 2,000 Gross profit (GP) =  2,000 x 20% = 400 Sales  = COGS + GP       = 2,000 + 400
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This note was uploaded on 05/15/2010 for the course ACCOUNTING B97702031 taught by Professor Lyz during the Spring '09 term at Punjab Engineering College.

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AFA_Lec_5 - AdvancedFinancial Accounting FIN611...

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