Answers to Review Questions

Volume 1 - Chapter 7

1.
M Dawe
Trading and Profit and Loss Account
for the year ended 31 March 20X2
£ £
Sales 23,414
Less Cost of goods sold:
Purchases 16,111
Less Closing stock 4,344 11,767
Gross profit 11,647
Less Expenses
Wages 1,900
Sundries 456
Rent 500

2,856
Net profit 8,791

2.
C Roddy
Trading and Profit and Loss Account
for year ended 30 June 20X4
£ £
Sales 113,321
Less Cost of goods sold:
Purchases 98,777
Less Closing stock 4,344 88,890
Gross profit 24,431
Less Expenses
Wages 6,555
Sundries 577
Rent 1,855
Advertising 894
Insurance 1,200
11,081
Net profit 13,350
3.
N Briggs
Trading and Profit and loss Account
for year ended 31 December 20X7
£ £
Sales 17,665
Less Cost of goods sold
Add Purchases 12,332
Less Closing stock 8,997 3,335
Gross profit 14,330
Less Expenses
Wages 1,900
Insurance 755
Rent 500
Motor expenses 461

3,616
Net profit 10,714

4.
C Brunt
Trading and profit and loss account
For year ended 31 December 20X2
£ £
Sales 8443
Less Cost of goods sold:
Purchases 5765
Less Closing stock 868 4897
Gross profit 3546
Less Expenses
Advertising 423
Motor expenses 534
Salaries 2321 3278
Net profit 268

5.
L Bullen
Trading and profit and loss account
For year ended 31 December 20X5
£ £
Sales 71,313
Less Cost of goods sold:
Purchases 52,414
Less Closing stock 2,535 49,879
Gross profit 21,434
Less Expenses
Wages 7,545
General expenses 3,443
Insurance 898 11,886
Net profit 9,548