Ben started trading on 1 January. His trial balance at 31 December, the end of his first year of trading is given below.
If the closing inventory at 31 December was £5,000 and depreciation is to be ignored, which one of the following is true?
A) The gross profit will be £31,500 and the net profit will be £25,000.
B) The gross profit will be £36,000 and the net profit will be £9,000.
C) The gross profit will be £31,000 and the net profit will be £3,000.
D) The gross profit will be £36,000 and the net profit will be £3,000.

Question

Ben started trading on 1 January. His trial balance at 31 December, the end of his first year of trading is given below.
 If the closing inventory at 31 December was £5,000 and depreciation is to be ignored, which one of the following is true?
A) The gross profit will be £31,500 and the net profit will be £25,000. 
B) The gross profit will be £36,000 and the net profit will be £9,000. 
C) The gross profit will be £31,000 and the net profit will be £3,000. 
D) The gross profit will be £36,000 and the net profit will be £3,000.

Quizplus · Accepted Answer

The Answer of Ben started trading on 1 January. His trial balance at 31 December, the end of his first year of trading is given below.
 If the closing inventory at 31 December was £5,000 and depreciation is to be ignored, which one of the following is true?
A) The gross profit will be £31,500 and the net profit will be £25,000. 
B) The gross profit will be £36,000 and the net profit will be £9,000. 
C) The gross profit will be £31,000 and the net profit will be £3,000. 
D) The gross profit will be £36,000 and the net profit will be £3,000.

Ben Started Trading on 1 January