3. Esther has a small store. Last month, she purchased merchandise costing P75 000.00 for which she paid freight of P7 500.00. She sold 60% of the merchandise for P68 000.00 after spending for various expenses totalling P13 000.00. She also paid P2 000.00 for interest on money she borrowed for her store. a. How much was her cost of sales? b. How much gross profit did she make? c. How much operating profit did she make? d. What was her net profit?

3. Esther has a small store. Last month, she purchased merchandise costing P75 000.00 for which she paid freight of P7 500.00. She sold 60% of the merchandise for P68 000.00 after spending for various expenses totalling P13 000.00. She also paid P2 000.00 for interest on money she borrowed for her store. a. How much was her cost of sales? b. How much gross profit did she make? c. How much operating profit did she make? d. What was her net profit?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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5 Sold goods for cash £140. 6 Bought goods on credit £325 from C Monty. 10 Paid rents by cash £200. 12Bought stationery £45, paying in cash. 18 Goods returned to D James £41. 21 Received rent of £25 by cheque for sublet of corner space. 23 Sold goods on credit to G Cross for £845. 24 Bought a van paying by cheque £4,100. 30 Paid the month's wages by cash £360. 31 The proprietor took cash for his own personal use £80. 9. Enter the following in the personal accounts (i.e., the creditor and debtor accounts) only. Do not write up the other accounts. Balance off each personal account at the end of the month. After completing this, state which of the balances represent debtors and which represent creditors. Sept 1 Sales on credit td J Bee £520; T Day £630; J Soul £240. 2 Purchases on credit D Blue £390; F Rise £510; P Lee £280. 8 Sales on credit to T Day £640; L Hope £418. 10 Purchases on credit from F Rise £92; R James £870. 12 Returns inwards from J Soul £25; T Day £190. 17 We returned…
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