1. CHAPTER 41 FINAL ACCOUNTS 2 Based on Qs 5 and 6: 13: 24 and 25 in the Textbook, Pages 382 to 384

2. 2 R. Delaney Q5 Profit and Loss A/C at 31/12/10 €€€ Gross profit40,000 Less expenses Light and heat6,000 Insurance3,000 Bad debts1,500 Wages10,500 Rates3,20024,200 Net profit15,800 Gross profit less expenses = net profit

3. 3 R. Delaney Q6 Profit and Loss A/C at 31/12/10 €€€ Gross profit36,000 Less expenses Travelling expenses5,300 Insurance2,500 Light and heat5,600 Telephone 2,800 Rent and rates8,60024,800 Net profit11,200 Gross profit less expenses = net profit

4. 4 R. Delaney Q13 Trading and Profit and Loss A/Cs at 31/12/10 €€€ Cash sales100,000 Less Cost of Sales Opening stock20,000 Cash purchases45,000 Carriage inwards27,200 Cost of goods available for sale92,200 Less closing stock18,000 Cost of goods sold74,200 Gross profit25,800 Less expenses Office expenses6,000 Interest on overdraft3,600 Travelling expenses5,200 Bad debts1,60016,400 Net profit 9,400 Sales less cost of goods sold = gross profit Gross profit less expenses = net profit

5. 5 R. Delaney Q13 (cont) Gross Profit Percentage= Gross Profit divided by Sales X 100 = 25,800 X 100 = 25.8% 100,000 Net Profit Percentage= Net Profit divided by Sales X 100 = 9,400 X 100 = 9.4% 100,000

6. 6 R. Delaney Q24 Trading, Profit and Loss and Profit and Loss Appropriation A/C at 31/12/10 €€€ Cash sales300,000 Less Cost of Sales Opening stock35,000 Cash purchases150,000 Carriage inwards6,000 Cost of goods available for sale191,000 Less closing stock30,000 Cost of goods sold161,000 Gross profit139,000 Less expenses Office expenses5,000 Interest on overdraft2,000 Travelling expenses4,500 Bad debts4,00015,500 Net profit 123,500 Less dividends paid7,000 Closing Profit and Loss Reserve116,500 Sales less cost of goods sold = gross profit Gross profit less expenses = net profit

7. 7 R. Delaney Q25 Trading, Profit and Loss and Profit and Loss Appropriation A/C at 31/12/11 €€€ Cash sales480,000 Less Cost of Sales Opening stock42,000 Cash purchases 200,000 Import duties5,500 Cost of goods available for sale 247,500 Less closing stock12,000 Cost of goods sold235,500 Gross profit244,500 Less expenses Advertising 8,700 Wages10,100 Light and heat 3,000 Insurance 2,50024,300 Net profit 220,200 Less dividends paid10,000 Closing Profit and Loss Reserve210,200 Sales less cost of goods sold = gross profit Gross profit less expenses = net profit