N4 Introductory Financial Accounting | Student Book DR
Date Details Fol. Amount
Trading inventory (Asset) Date
CR Details
20.1 Feb 1 Cost of Sale
Fol. Amount 2 400
DR Date
20.1 Feb
1 Details
Trading Inventory
Fol. Amount
Cost of Sales (Expense) Date
2 400
CR Details Fol. Amount
Activity 5.4
Calculate the cost prices in the following table. No.
Selling Price
1. 2. 3. 4. 5.
R4 500 R2 900 R3 000 R8 900
R12 000 Mark up%
25% 20%
33.33% 45% 75%
Cost Price
5.4.3
Sales
When a business buys goods in order to resell again at a higher price, the goods that they sell are called sales. Sales in a business refer to the total value of goods that are sold over a certain period of time, which can be a week, month or year.
Calculating the selling price and profit The following formula can be used to calculate the selling price:
