Question

Question 2 (3 +2 = 5 marks) a) Opening Stock RO. 210000; Sales RO.400000; Fuel expenses RO. 7000; Furniture Purchased RO 50000, Returns Inwards RO. 3000; Gross Profit RO. 40000; Purchases RO. 100000; Returns outwards RO. 5000. Calculate the closing Stock and the cost of Goods Sold. b) Operating profit earned by Sugar Stores in 2016-2017 was RO. 580,000 its interest income during the year RO 17300 and loss due to discontinued operations during the year was RO18000. Calculate the amount of net profit earned by the firm.

Answer 1

1	Cost of Goods Sold	357,000
	(Net Sales - Gross Profit)
	(400,000 - 3,000 - 40,000)
	Closing stock	(52,000)
	(Opening Stock + Net Purchase - COGS)
	(210,000 + 100,000 - 5,000 - 357,000)
2
	Operating Profit	580,000
	Interest Income	17,300
	Loss on discontinued operations	(18,000)
	Net Income	579,300