Question

On the 31/August Brain ltd has opening inventory of 20,000 goods. During September requisitions were raised for 23,000 valued at $12,000

Opening Cash was $7,000

Brain purchase 4,000 Goods at $2 and for 8,000 on Credit valued at $2 each from Law ltd

20,000 Goods were sold on credit totaling at $60,000 and 3,000 Cash Sales valued $9,000.

Of the 20,000 sold on credit the customer returned 1,000.

a)    Extract Brain Ltd retail’s profit & loss statement & balance sheet elements

Answer 1

Profit & loss statement

$$-24,000+60,000+9,000-3,000=42,000$$

Balance

$$7,000-12,000+42,000=37,000$$