calculating the profit for the period.
The owner of Time Traders requested you to calculate the net profit for the year ended
30 June 2020. Mr Minute, the owner, has not been very diligent in keeping records. He has presented
you with the following information:
His assets and liabilities at the beginning of the financial year were as follows:
Equipment at carrying value R75 000
Vehicles at carrying value R 125 000
Trading inventory R180 000
Cash in bank R32 000
Debtors R31 500
Creditors R8 500
Loan: Second Bank (14%) R50 000
The bank statements show a credit balance of R48 790 as at 30 June 2020.
All the cash received has been deposited.
A stock‐take performed on 30 June 2020, showed inventory on hand with a cost price of
R230 000.
The debtors balance at year‐end is R38 000 and the creditors balance is R16 225.
Equipment was purchased during the year at a cost price of R5 000.
The owner took R23 000 in cash for personal use during the year ended 30 June 2020.
R5 000 was repaid on the loan during the year.
Please may I get assistance calculating the profit for the period.
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