based on that solution just want to ask how find gross profit and net profit？半夜12:30O all ll10Pront or Loss and Comprenensive income is astatement prepared in a format of ledgeraccount shows gross profit and net profitamounts.The first part calculated the grossprofit/loss resulting from purchases andsale(core activity) of business while the secondpart calculates the net profit/loss resulting fromoperating activities such as administrativeexpenses and general expenses,interestincomes,maintenance and repairs,selling anddistributions ,provisions etc.Solution for requirement (a).Statement of Profit and Loss and Comprehensive IncomeFor year ended 31 August 2019ParticularsOpening InventoryPurchases(-) Purchase Returns(-)Goods WithdrawnWages & SalariesGross Profit c/dTotalAmount (RM) Amount (RM) ParticularsAmount (RM) Amount (RM)2,400 Sales(-) Sales ReturnsClosing Inventory30,65040,40031.00030040,1002503,3001005,6004,75043,400 Total120 Gross Profit b/d700 Discount Received950 Provision for doubtful debt43,400DiscountInsuranceUtilities4, 750200RatesBad DebtsNet Profit c/fTotal350Old300200New2122,8425,162 Total5,162We can conclude that the business has grossprofit of 4,750 RM and Net Profit of 2,842 RM.Step2b)Statement of Financial PositionBalance Sheet is a statement of financial OkyOTcw/a/MjUwNDEyNDM20TEx/detailsParticularsCredit (RM)48,400Debit (RM)CapitalDrawingsTrade receivablesTrade payablesSalesPurchasesSales returnsPurchases retumsWages and salariesDiscounts allowedDiscounts receivedProvision for doubtful debtsInsuranceInventory as at 1 September 2018Utilities3,5009,00012,50040,40031,0003002505,6001202003007002,40095035010,0003,00020,000RatesPremisesFixtures and fittingsMotor vanCash in handCash at bankTOTAL33014,800102.050102.050Additional information as at 31 August 2019:i. Inventory as at 31 August 2019 amounted RM3,300ii. An entity from whom there is accounts receivables of RM200 was unable tosettle his debt and this amount is to be written off as bad debts.iii. The provision for doubtful debts is 1% of the outstanding trade receivables.iv. The owner took RM100 worth of goods from the business for his own useRequired:a) Statement of Profit or Loss and Others Comprehensive Income for the yearEnded 31 August 2019.b) Statement of Financial Position as at 31 August 2019.РОСОSHOT ON POCO F2 PRO

Gross profit is calculated on basis of sales and cost of good sold and other direct expenses. Net…

Debit (RM) Credit (RM) 48,400 Particulars Capital Drawings Trade receivables Trade payables Sales Purchases Sales returns Purchases retums Wages and salaries Discounts allowed 3,500 9,000 12,500 40,400 31,000 300 250 5,600 120 Discounts received Provision for doubtful debts Insurance Inventory as at 1 September 2018 Utilities Rates Premises Fixtures and fittings Motor van Cash in hand Cash at bank TОTAL 200 300 700 2,400 950 350 10,000 3,000 20,000 330 14,800 102.050 102.050 Additional information as at 31 August 2019: i. Inventory as at 31 August 2019 amounted RM3,300 ii. An entity from whom there is accounts receivables of RM200 was unable to settle his debt and this amount is to be written off as bad debts. iii. The provision for doubtful debts is 1% of the outstanding trade receivables. iv. The owner took RM100 worth of goods from the business for his own use Required: a) Statement of Profit or Loss and Others Comprehensive Income for the year Ended 31 August 2019. b) Statement of Financial Position as at 31 August 2019.

Debit (RM) Credit (RM) 48,400 Particulars Capital Drawings Trade receivables Trade payables Sales Purchases Sales returns Purchases retums Wages and salaries Discounts allowed 3,500 9,000 12,500 40,400 31,000 300 250 5,600 120 Discounts received Provision for doubtful debts Insurance Inventory as at 1 September 2018 Utilities Rates Premises Fixtures and fittings Motor van Cash in hand Cash at bank TОTAL 200 300 700 2,400 950 350 10,000 3,000 20,000 330 14,800 102.050 102.050 Additional information as at 31 August 2019: i. Inventory as at 31 August 2019 amounted RM3,300 ii. An entity from whom there is accounts receivables of RM200 was unable to settle his debt and this amount is to be written off as bad debts. iii. The provision for doubtful debts is 1% of the outstanding trade receivables. iv. The owner took RM100 worth of goods from the business for his own use Required: a) Statement of Profit or Loss and Others Comprehensive Income for the year Ended 31 August 2019. b) Statement of Financial Position as at 31 August 2019.

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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