\(\begin{array}{c|c} & \text{N} \\ \hline \te...
\(\begin{array}{c|c} & \text{N} \\ \hline \text{Debtors opening} & 4000 \\ \hline \text{Debtors closing} & 1500 \\ \hline \text{Cash received from debtors} & 8500 \\ \hline \text{Bad debts written off} & 350 \\ \hline \text{Discount allowed} & 500 \\ \hline \text{Discount received} & 1000
\end{array}\)
If the gross profit is N5 000, what is the net profit?
₦4,350
₦6,000
₦5,150
₦4,000
Correct answer is C
If the gross profit is ₦5,000, then the net profit is calculated below;
The item that will appear in the profit and loss account are;
Bad debt written off ₦350, Discount allowed ₦500 and Discount received ₦1,000
\(\begin{array}{c|c} \text{Gross Profit} & 5000 & \\ \hline \text{Discount Received} & 1000 & 6000 \\ \hline \text{Expenses} & & \\ \hline \text{Bad debt.} & 350 & \\ \hline \text{Discout Allowed} & 500 & 850 \\ \hline \text{Net profit} &
& 5,150 \end{array}\)
Net profit is the profit made after all the expenses incurred are deducted from the gross profit
₦5150 is the net profit calculated i.e bad debt 350 &nplus; discount allowed 500 &nplus; net profit 5,150 less gross profit 5,000 + discount received 1,000
Chukwu's Capital at 1/1/89 and 31/12/89 were N30,000 and N50,000 respectively. During the year h...
The salary of the chief Justice of the Federation is paid from the? ...
Which of the following is not prepared by a partnership? ...
A partnership's internal regulations are set out by ...
A debit balance of N1,000 in cash account means that ...
Le Capital (01/01/2020) 1,93...
Transfers from the head office to branches are best carried out at__________ ...
Use the following information, \(\begin{array}{c|c} & Le\\ \hline \text{Sales} & 183,400 \\...