Gce Model Questions Vol1 2023 Financial Accounting Question 20

Practice objective / multiple choice question 20 from the 2023 Gce Model Questions Vol1 Financial Accounting examination.

Gce Model Questions Vol1 2023 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 20 GCE_MODEL_QUESTIONS_VOL1 • 2023 • FINANCIAL_ACCOUNTING • objective

The following information relates to the financial year of a sole trader: - Sales: £(120,000) - Sales returns: £(5,000) - Opening stock: £(20,000) - Purchases: £(55,000) - Purchase returns: £(2,000) - Carriage inwards: £(1,500) - Closing stock: £(18,000) - Salaries: £(12,000) - Rent: £(5,000) - Depreciation on equipment: £(3,000) - Discount allowed: £(1,200) - Discount received: £(500) - Interest received: £(800) - Provision for doubtful debts created: £(2,000) Prepare the trading account to find the gross profit and then the profit and loss account to find the net profit for the year.

Answer Options

A. Gross profit £60,000; Net profit £38,200
B. Gross profit £55,500; Net profit £34,600
C. Gross profit £57,000; Net profit £35,500
Correct Answer D. Gross profit £58,500; Net profit £36,600
Correct Answer
D
Correct Option:
Gross profit £58,500; Net profit £36,600

About This Question

This is Gce Model Questions Vol1 2023 Financial Accounting Question 20. It is one of the objective questions from the 2023 Gce Model Questions Vol1 Financial Accounting examination.

Difficulty level: Medium .

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