Answer to Question #123972 in Accounting for kwakh

Question

Bright Star Resort recorded the following figures for December 2019: Labour costs were
R50 000, overheads were R180 000 and the gross profit was R110 500.
2.1 Calculate the net profit that was achieved during the month.

Answer 1

Net profit $=$ Total revenue $-$ Total expenses.

$=$ Gross profit less labour cost and overheads.

$= 110500-(50000+180000)$

$=110500-230000$

Net profit $=-119500$

Net loss $=119500$