JAMB - Accounts Principles Of Accounts (2024 - No. 70)
| # | |
|
Stock 1/1/09 |
2200 |
|
Purchases |
18000 |
|
Sales |
27000 |
|
Salaries |
1500 |
|
Rejection in doubtful debts |
500 |
|
Office expenses |
1100 |
|
Other expenses |
1300 |
|
Stock 31/12/09 |
1000 |
The net profit is
#3,400
#4,400
#3,900
#3,800
Explanation
COGS = #2,200 (Opening Stock) + #18,000 (Purchases) - #1,000 (Closing Stock) COGS
#19,200
Calculate the Gross Profit:
Gross Profit = Sales - COGS
Gross Profit = # 27,000 (Sales) - #19,200 (COGS)
Gross Profit = #7,800
Calculate the Net Profit:
Total Operating Expenses = #1,500 + #500 + #1,100 + # 1,300 = # 4,400
Net Profit = Gross Profit - Operating Expenses
Net Profit = #7,800 (Gross Profit) - # 4,400 (Operating Expenses)
Net Profit #3,400
=
#19,200
Calculate the Gross Profit:
Gross Profit = Sales - COGS
Gross Profit = # 27,000 (Sales) - #19,200 (COGS)
Gross Profit = #7,800
Calculate the Net Profit:
Total Operating Expenses = #1,500 + #500 + #1,100 + # 1,300 = # 4,400
Net Profit = Gross Profit - Operating Expenses
Net Profit = #7,800 (Gross Profit) - # 4,400 (Operating Expenses)
Net Profit #3,400
=
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