Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

The owner of a business does not maintain a complete set of accounting records for the business. Information about assets and liabilities is given below. All purchases and sales are made on credit. In the current year: 1. Customers paid $168\,000$ to the business after a discount of $3400$ had been allowed. 2. The business paid $74\,000$ to suppliers for inventory. No discounts were received. 3. The owner withdrew inventory worth $3200$ for personal use. What was the gross profit for the current year?

  • A$110\,000$
  • B$110\,200$
  • C$111\,700$
  • D$113\,400$

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