P2

 

The Trisha Co. uses the instalment method. The following information was taken from the incomplete records of the company: nstallment !a !ales Cost of sales &ross 'rofit &' (ates Collections 2015

2015 16"000"000 % % %

2016 1#"200"000 % % %

2017 2$"000"000 % % 25)

$"000"000

*"$00"000

+"200"000

2016 #"600"000 2017 (eali,ed &ross 1"760"000 % 'rofit 1. -hat is the reali,ed gross profit in 2016% 2. -hat is the gross profit rate in 2016%

5"760"000 1*"*00"000 5"6$6"*00

n /uly /uly 1" 2016 2016" " & & 34 34 oto otors rs" " whic which h main mainta tain ins s a perp perpet etua ual l inentory records sold a new automoile to / for ' 1"700"000. The Th e car car cost cost th the e sell seller er ' 1"+0 1"+01" 1"25 250 0 the the uye uyer r paid paid +0) +0) down down efore deducting the allowance and receied ' 160"000 allowance on an old car traded" the alance eing payale in e8ual monthly instalment payments. The monthly amorti,ation amounts to ' 60"000 inclusie of 12) interest on the unpaid amount of the oligation. The Th e car car trad traded ed in ha has s a whol wholes esal ale e alu alue e of ' 2*0" 2*0"00 000 0 afte after r e9pend e9p ending ing recond reconditi itioni oning ng cost cost of ' *5"000 *5"000. . 4fter 4fter paying paying three three inst in sta alme lments" nts" th the e uye uyer r suf suffer fered mao aor fina finan ncia cial set seta ack incapacitating him to continue paying so that car was suse8uently repossessed. -hen reac8uired" the car was appraised to hae a fair alue of ' 600"000. 3. 4.

-hat is the deferred gross profit at the end of the year% -hat is the reali,ed gross profit on installment sales during the year%

  The

following trial alance was prepared for the ats Corporation on 3ecemer +1" 2017.

Cash nstallment accounts receiale" 2017 nstallment accounts receiale" 2016 nstallment accounts receiale" 2015 4ccounts (eceiale nentory" 12;+1;16 ther 4ssets 4ccounts 'ayale 3eferred gross profit" 2016 3eferred gross profit" 2015 Capital stock (etained earnings !ales nstallment sales 'urchases (epossessed merchandise Cost of installment sales !hipments on instalment sales oss on repossession perating e9penses   Total

50"000 160"000 *0"000 10"000 $0"000 60"000 10*"000 150"000 1#2"000 *5"000 200"000 $#"000 +$*"000 1"000"000 #10"000 20"000 620"000 620"000 26"000 600"000 2, 2,68 680, 0,00 000 0

2,68 2,680, 0,00 000 0

 

The following account alances were found in the post