LCCI trading & profit & loss.
year 5 BS:
F&F - 14000, provison for dereciation - 9600
MV - 14400, provision for depreciation - 3800
stock - 25900, debtor - 16560, cash - 190, prepaid Adminstrative Expenses 200, capital - 39200, bank o/d - 7230, creditor - 11420.
all money received from cash sales and from credit customers is paid fully in bank. cash in hand increased from 190 to 250.
bank a/c in year 6 ended.
cash sales - 75670, debtor - 208710.
creditor - 184430, selling exp. - 35480, drawing - 10600, adminstrative exp. - 41700, f & F purchased - 5800.
additional information at year 6 ended.
closing stock - 29400, creditor - 13100. preapid 170 adminstrative exp.
owing 340 selling exp. F&F depreciate 10% on cost, MV depreciate 20% on cost.
trade debtor 12680, E.wong decide to write off a futherdebt of 80,after having written off debts amounting to 395 during the year.
provision for bad debt 5%of debtor of year 6 nded.
trading & profit & loss for the year6 ended.
- Mr.Lv 71 decade agoFavorite Answer
Revenue is a U.S. business term for the amount of money that a company receives from its activities in a given period, mostly from sales of products and/or services to customers. It is not to be confused with the terms "profits" or "net income" which generally mean total revenue less total expenses in a given period. In Europe (including the UK) the term is turnover. For individuals, the equivalent term is income. For government, revenues refers to the gross proceeds received from taxes, fees, and the like. For non-profit organizations, revenue from products and services can be expanded to include proceeds from donations, grants, trade in lieu of cash, and other liquid assets.
Gross profit or sales profit or gross operating profit is the difference between revenue and the cost of making a product or providing a service, before deducting overheads, payroll, taxation, and interest payments.
In general, it is the profit shown on a transaction if one disregards the indirect costs. It is the revenue that remains once one deducts the costs that arise only from the generation of that revenue.
For a retailer, gross profit is the shop takings less the cost of the goods sold. For a manufacturer, the direct costs are the costs of the materials and other consumables used to make the product. For example, the cost of electricity to operate a machine is often a direct cost while the cost of lighting the machine room is an overhead. Payroll costs may also be direct if the workforce is paid a unit cost per manufactured item. For this reason, service industries that sell their services by time units often treat the fee-earners' time cost as a direct cost.
Gross profit is an important guide to profitability but many small businesses fail because they overlook the regular demand to meet the fixed costs of the business. The indirect costs are considered when calculating net income, another important guide to profitability