Complete the trading account of Blake Ltd for the year ended 31/12/2018: Trading Account of Blake Ltd for the year ended 31/12/2018 € € Sales 850,000 Less cost of sales Opening stock 75,000 Purchases Less closing stock 115,000 Cost of sales Gross profit - Junior Cycle Business Studies - Question 14 - 2019

To calculate the Purchases, we need to determine the Cost of Sales first.

The formula to calculate Cost of Sales is:

$ext{Cost of Sales} = ext{Opening Stock} + ext{Purchases} - ext{Closing Stock}$

Given:

• Opening Stock = €75,000
• Closing Stock = €115,000

So:

Let the Cost of Sales be $C$, then:

$C = 75,000 + 450,000 - 115,000$

By simplifying:

$C = 410,000$

Hence, the Purchases = €450,000 (as provided).