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CALCULATION OF GP AND NET PROFIT

((deleted)4y ago
Hello there, I would like to cross check my answer Use the relevant Information from the extracts to the trial balance Extracts from the trial balance of Arthur a limited liablity company for the year ended 30 the June 2018 shown below $'000 $'000 Revenue 13800 Cost of sales 10350 Carriage inwards 200 Carriage outwards 450 Rent and rates for office building 2555 Inventory as at 30 June 20X8 850 Tax-over provision in prior year 30 Use the relevant Information from the extracts to the trial balance Arthur Co's gross profit for the year ended 30 June 20X8 is $ 3250 ( cos=10350+200) Arthur Co's profit before tax for the year ended 30 June 20X8 is calculated by taking the gross profit for the year and adjusting by $ gp - expenses ( 3250-2555)
John MoffatJohn MoffatTutor4y ago#1
Your gross profit is correct. However, the expenses to subtract to get the net profit are 450 + 2,555.
((deleted)4y ago#2
Tax over provision is also an expense so should we subtract that
((deleted)4y ago#3
THANK U SO MUCH SIR
John MoffatJohn MoffatTutor4y ago#4
You are welcome :-)
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