A trader bought goods for resale on credit costing £1,000 in July and paid for them in August. These were sold on credit for £1,500 in September and the money received in October. a. The costs were incurred in July, the revenue was earned in September and the profit of £500 arose in September b .The costs were incurred in August, the revenue was earned in October and the profit of £500 arose in October c. The costs were incurred in October, the revenue was earned in October and the profit o £500 a rose in October d. There was a loss of £1,000 in August and a profit of £1,500 in October
A trader bought goods for resale on credit costing £1,000 in July and paid for them in August. These were sold on credit for £1,500 in September and the money received in October. a. The costs were incurred in July, the revenue was earned in September and the profit of £500 arose in September b .The costs were incurred in August, the revenue was earned in October and the profit of £500 arose in October c. The costs were incurred in October, the revenue was earned in October and the profit o £500 a rose in October d. There was a loss of £1,000 in August and a profit of £1,500 in October
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A trader bought goods for resale on credit costing £1,000 in July and paid for them in August. These were sold on credit for £1,500 in September and the money received in October.
a. The costs were incurred in July, the revenue was earned in September and the profit of £500 arose in September
b .The costs were incurred in August, the revenue was earned in October and the profit of £500 arose in October
c. The costs were incurred in October, the revenue was earned in October and the profit o £500 a rose in October
d. There was a loss of £1,000 in August and a profit of £1,500 in October
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