[jonleyh]

Let me explain
The last financial year at year end means the year end profit
As in the case some will not believe me
Financial Year is calculated ;
15 Aug c/f 2023 to 16 Aug b/f 2023
Ask lecturers if you don’t understand.

It must be called instead previous year end profit

Thank You

[jonleyh]

The answer is in the question

[jonleyh]

You are right my friend
Let me explain ;
Profit = Income – Expenses
Capital = Asset – Liabilities

As Capital = Turnover ( concrete cash = cash without goodwill because assets are depreciated )

Turnover = Shares valued
As from the equation
Capital = Asset – Liabilities
So,
Capital is Share valued
Asset is initial share valued without year end profit
Liabilities is profit for the year ( negative because it is owed to shareholders )
Then finally,
Share valued = Initial Share Value –
(-Year end profit)
Share valued = Initial Share Value +
Liable Profit

Thank You

[jonleyh]

It must be a Cr because the amount linked to purchases is more than sales
Calculation :
1) excluding tax
Ex ; ( 17.5/100 ) × 10000 = 1750

2) including tax
Ex ; ( 100 +17.5 ) % = 7402
1 % = ( 7402÷117.5 )
17.5 % = ( 7402÷ 117.5 ) ×
17.5%
= 1102.42
( the answer was 1102.426 but it’s not 43 cents and $ 0.006 does not exist )

Tax Account
Dr $ $ Cr
RECEIVABLE 5765 PAYABLE 7895
Balance c/d 2130
Total 7895 Total 7895
Balance b/d 2130
Final Answer = $ 2130 Cr

[Author]

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