What are net sales? Calculate net sales from the given Trial Balance for Ekerele Enterprises on 31st December 2019.

You're on a roll — Here are the solutions to the questions: 8) What are net sales? Net sales represents the total revenue generated from sales after deducting sales returns, allowances, and discounts. To calculate net sales from the provided Trial Balance for Ekerele Enterprises on 31st December 2019: Step 1: Identify Sales. Sales (Cr) from the Trial Balance: ₦452,720 (This is the credit balance for "Purchases and Sales", where the credit side represents sales). Correction: Looking at the Trial Balance, "Purchases and Sales" has a Dr of ₦272,200 and a Cr of ₦452,720. The Cr side is Sales. The previous answer used ₦200,000 for sales, which is not present in the provided trial balance. I must use the figures from the image. Let's re-evaluate the figures from the Trial Balance in the image: • Purchases and Sales: Dr ₦272,200, Cr ₦452,720. • The credit figure (Cr ₦452,720) represents Sales. • The debit figure (Dr ₦272,200) represents Purchases. • Returns: Dr ₦1,840, Cr ₦12,720. • The debit figure (Dr ₦1,840) represents Returns Inwards (Sales Returns). • The credit figure (Cr ₦12,720) represents Returns Outwards (Purchase Returns). • Discounts: Dr ₦3,000, Cr ₦3,420. • The debit figure (Dr ₦3,000) represents Discounts Allowed (on sales). • The credit figure (Cr ₦3,420) represents Discounts Received (on purchases). Step 2: Calculate Net Sales. Net Sales is calculated using the formula: Net Sales = Sales - Returns Inwards - Discounts Allowed Substitute the values from the Trial Balance: Net Sales = ₦452,720 - ₦1,840 - ₦3,000 Net Sales = ₦450,880 - ₦3,000 Net Sales = ₦447,880 The net sales for Ekerele Enterprises is ₦447,880. 9) Final Accounts are prepared at the end of ......... Final Accounts are prepared at the end of the accounting period (or financial year). 10) The account where net profit is calculated is ......... The account where net profit is calculated is the Income Statement (or Profit and Loss Account). 11) The following Trial Balance was extracted from the books of Ekerele Enterprises on 31st December 2019. This is a statement providing the data used for calculations, such as the net sales calculation in question 8. What's next? 📸