Prepare the Statement of Profit or Loss for Ekerele Enterprises for the year ended 31st December 2019.

To prepare the Statement of Profit or Loss for Ekerele Enterprises for the year ended 31st December 2019, we will use the provided balances from the trial balance and the additional information.

Statement of Profit or Loss for Ekerele Enterprises
For the Year Ended 31st December 2019

Step 1: Calculate Net Sales
Net Sales is calculated by deducting Returns Inwards from Sales.

$$\begin{align*} \text{Sales} &= \text{₦}243,120 \\ \text{Less: Returns Inwards} &= \text{₦}6,860 \\ \text{Net Sales} &= \text{₦}243,120 - \text{₦}6,860 \\ &= \text{₦}236,260 \end{align*}$$

Step 2: Calculate Cost of Goods Sold (COGS)
COGS includes opening inventory, purchases, direct costs related to purchases, and direct wages, less returns outwards and closing inventory.

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