Sales $400,000.

00
Less: sales return -$11,000.00
$389,000.00

Opening inventory $27,000.00

Add: purchases $175,000.00
Add: carriage inward $150.00
Less: Purchase return -$6,000.00
less: drawings -$3,000.00
Less: closing inv -$17,000.00
$176,150.00

Gross profit $212,850.00

Less expenses
Carriage outward $350.00
Rent exp $12,000.00
Office exp $7,500.00
General exp $3,500.00
Loan interest $800.00
Electricity $3,700.00
Wages and salaries $24,000.00
Advertising $1,400.00
Discount allowed $300.00 -$53,550.00

Add other income

Comission $5,500.00
Rent $13,000.00 $18,500.00

Profit for the year $177,800.00