endry Ltd opened his new business on 1 January 2022. On that date, the only asset was a bank balance of 11,000. During the year, Hendry's drawings from the business totalled £36,000. On 31 December 2022, the ssets and liabilities of the business were as follows: omputers and furniture £61,000; inventory of raw materials £17,500; finished goods, at cost £8,400; bank verdraft £12,600; trade payables £6,500; prepayments £2,500; trade receivables £5,500; the provision for bad ebts £3,000; bank loan £40,000; interest payable £1,500; accrued expenses £3,600. What is the profit of the business in the year ended 31 December 2022? Select one answer: £41,700 O£88,700 £52,700 O £66,700
endry Ltd opened his new business on 1 January 2022. On that date, the only asset was a bank balance of 11,000. During the year, Hendry's drawings from the business totalled £36,000. On 31 December 2022, the ssets and liabilities of the business were as follows: omputers and furniture £61,000; inventory of raw materials £17,500; finished goods, at cost £8,400; bank verdraft £12,600; trade payables £6,500; prepayments £2,500; trade receivables £5,500; the provision for bad ebts £3,000; bank loan £40,000; interest payable £1,500; accrued expenses £3,600. What is the profit of the business in the year ended 31 December 2022? Select one answer: £41,700 O£88,700 £52,700 O £66,700
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Hendry Ltd opened his new business on 1 January 2022. On that date, the only asset was a bank balance of
£11,000. During the year, Hendry's drawings from the business totalled £36,000. On 31 December 2022, the
assets and liabilities of the business were as follows:
Computers and furniture £61,000; inventory of raw materials £17,500; finished goods, at cost £8,400; bank
overdraft £12,600; trade payables £6,500; prepayments £2,500; trade receivables £5,500; the provision for bad
debts £3,000; bank loan £40,000; interest payable £1,500; accrued expenses £3,600.
What is the profit of the business the year ended 31 December 2022?
Select one answer:
£41,700
O£88,700
O £52,700
O £66,700
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