#1
Hi Pit,

Damn, I hope I'll get some decent answers, but I'll post the prob anyway.

I'm writing Accountancy Grade 12 Prelims on Tuesday and stumbled upon this problem while doing some revision:

A debtor returned a bike he bought for R14 000 because it was broken (or whatever). The company (let's call it "Bike Co.") immediately returned said bike to their creditor. The profit margin of "Bike Co." is 75%.

Now I've worked out that the bike originally cost R8000. Whoopie for me. But now my question is, does this have any effect on "Bike Co.'s" stock? I mean, does that R8000 or R14 000 or whatever get added or subtracted from the stock account? I'm sure it should have no effect, because it was added to the stock account and then taken off again, but I could be wrong. The total of the stock account is R245 950 BEFORE the bike was returned.

Thanks for any help!
Quote by Aguamento

I'm glad he handled it calmly. Joe Satriani should realize that with only 7 notes in the world, some songs are going to sound similar.


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#3
Quote by Cianyx
Did Bike Co. buy or sell the stock?


Bought it from the other company to sell it to the debtor.
Quote by Aguamento

I'm glad he handled it calmly. Joe Satriani should realize that with only 7 notes in the world, some songs are going to sound similar.


My Gear


Yamaha G-225
Ibanez RG7321
Santa-fe 5 String
Ahead 7A Drumsticks