Question 34
Not-for-Profit OrganisationsUse the following information to answer questions 34 and 35.
The transactions of All Girls' Social Club for the year 2021 are as follows:
Bar Sales D 30,000; Bar purchases D 17,000 and Rent D 1,200
31st December: 2020 / 2021
Stock at bar: D 1,400 / D 1,600
Owing for bar supplies: D 6,500 / D 7,300
The value of purchases for the year is
- A.D 17,800.
- B.D 17,000.
- C.D 16,800.
- D.D 16,200.
Show the answer and explanation
Answer: A (D 17,800.)
Explanation
17,000 paid + 7,300 owing at end − 6,500 owing at start = D 17,800.