Sales $712,000.

00
Less: Sales return $15,000.00 $697,000.00

Less cost of sales

Opening Inventory $41,000.00
Add: Purchases $346,000.00
Add: Carriage Inwards $300.00
Less: Purchase returns $8,000.00
Less: Closing inventory $33,000.00
Cost of goods sold $346,300.00
Gross Profit $350,700.00

Less Expenses
Discount allowed $2,000.00
General expenses $48,700.00
Insurance $14,000.00
Salaries $63,000.00
Electricity $8,000.00
Loan interest $4,500.00
Carriage outwards $2,500.00
Rent $1,000.00
Motor expenses $20,000.00 $163,700.00

Add other income

Commission received $3,500.00
Rent receivable $500.00
Discount received $1,000.00 $5,000.00

Profit for the year $192,000.00