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Calculate the trading profit and identify the main cost before profit calculation.

Accounting

ScanSolve AI Answer

Answer

C

Step-by-step solution

4 steps

here are the answers to the questions:

Part 9

Willie Willie has just purchased goods from a tucker shop on credit. The owner should record the sale in the purchase journal.
The correct option is C.

Part 10

The main cost that a business has before calculating its profit is cost of goods sold.
The correct option is C.

Part 11· 4 steps

Calculate the trading profit.

  1. Calculate Total Sales Revenue.

    Total Sales=Cash sales+Credit sales\text{Total Sales} = \text{Cash sales} + \text{Credit sales} Total Sales=K 5500.00+K 2800.00\text{Total Sales} = \text{K } 5500.00 + \text{K } 2800.00 Total Sales=K 8300.00\text{Total Sales} = \text{K } 8300.00

  2. Calculate Total Purchases.

    Total Purchases=Cash purchase+Credit purchases\text{Total Purchases} = \text{Cash purchase} + \text{Credit purchases} Total Purchases=K 2200.00+K 3500.00\text{Total Purchases} = \text{K } 2200.00 + \text{K } 3500.00 Total Purchases=K 5700.00\text{Total Purchases} = \text{K } 5700.00

  3. Calculate the Cost of Goods Sold (COGS).

    COGS=Stock at start+Total Purchases−Stock at end\text{COGS} = \text{Stock at start} + \text{Total Purchases} - \text{Stock at end} COGS=K 1900.00+K 5700.00−K 2400.00\text{COGS} = \text{K } 1900.00 + \text{K } 5700.00 - \text{K } 2400.00 COGS=K 7600.00−K 2400.00\text{COGS} = \text{K } 7600.00 - \text{K } 2400.00 COGS=K 5200.00\text{COGS} = \text{K } 5200.00

  4. Calculate the Trading Profit (Gross Profit).

    Trading Profit=Total Sales−COGS\text{Trading Profit} = \text{Total Sales} - \text{COGS} Trading Profit=K 8300.00−K 5200.00\text{Trading Profit} = \text{K } 8300.00 - \text{K } 5200.00 Trading Profit=K 3100.00\text{Trading Profit} = \boxed{\text{K } 3100.00}
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