The Beaded Doll

Statement of Profit and loss for the period ending 30 June 20x7

Sales 408500 Markup

Less: Cost of Sales 219000
Opening inventory 28000 Gross Profit/ Cost of Sales
Add: Purchases 222000 189 500/ 219 000
Transport in 6000 87%
Less: Closing Inventory -37000
Gross Profit 189500 Gross Profit

Less: Operating expenses 130000 Gross Profit /Sales

Selling expenses 35000 189 500 / 408500

Administration expenses 95000 46%

Net Profit for the period 59500

If discount will be taken If discount wont be taken
Dr Cr Dr Cr
Inventory on hand 960 Inventory on hand 1000
Acc Pay 960 Acc Pay 1000
1000 - (4% x 1000)

Acc Pay 960 Acc Pay 1000

Bank 960 Bank 960
Interest income 40
Acc Rec 741 Acc Rec 780
Sales 741 Sales 780
(780 - (5% of 780))
Cost of Sales Expense 600
Cost of Sales Expense 576 Inventory on hand 600
Inventory on hand 576
(600 - (4% of 600))

Acc Rec 494 Acc Rec 520

Sales 494 Sales 520
(520 - (5% of 520)
Cost of Sales Expense 384 Cost of Sales Expense 400
Inventory on hand 384 Inventory on hand 400
(400 - (4% of 400))

Bank 741 Bank 741

acc Rec 741 acc Rec 780
Interest expense 39
Bank 520
acc rec 494 Bank 520
Interest income 26 acc rec 520