Accounting 9706 · AS & A Level · Preparation of financial statements

Preparation of financial statements — practice question

A sole trader records a profit for the year of $31{,}000 after allowing for the following items: carriage inwards $2600 decrease in provision for doubtful debts $1500 discount received $2000 other expenses $28{,}000 profit on disposal of non-current asset $300 What was the gross profit for the year?

  • A$55{,}200
  • B$55{,}500
  • C$56{,}700
  • D$57{,}800

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