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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 13800Cost 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
30Use 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)
Your gross profit is correct.
However, the expenses to subtract to get the net profit are 450 + 2,555.
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Tax over provision is also an expense so should we subtract that
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THANK U SO MUCH SIR
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