Photo AI

Complete the trading account of Blake Ltd for the year ended 31/12/2018: Trading Account of Blake Ltd for the year ended 31/12/2018: € € Sales Less cost of sales Opening stock 75,000 Purchases 450,000 Less closing stock 115,000 Cost of sales Gross profit - Junior Cycle Business Studies - Question Question 1 - 2019

Question icon

Question Question 1

Complete-the-trading-account-of-Blake-Ltd-for-the-year-ended-31/12/2018:--Trading-Account-of-Blake-Ltd-for-the-year-ended-31/12/2018:--€--€--Sales-------------------------------------Less-cost-of-sales--Opening-stock--------------------------75,000--Purchases-----------------------------450,000--Less-closing-stock--------------------115,000--Cost-of-sales----------------------------Gross-profit-----------------------------Junior Cycle Business Studies-Question Question 1-2019.png

Complete the trading account of Blake Ltd for the year ended 31/12/2018: Trading Account of Blake Ltd for the year ended 31/12/2018: € € Sales ... show full transcript

Worked Solution & Example Answer:Complete the trading account of Blake Ltd for the year ended 31/12/2018: Trading Account of Blake Ltd for the year ended 31/12/2018: € € Sales Less cost of sales Opening stock 75,000 Purchases 450,000 Less closing stock 115,000 Cost of sales Gross profit - Junior Cycle Business Studies - Question Question 1 - 2019

Step 1

Less cost of sales

96%

114 rated

Answer

To calculate the cost of sales, we need to determine the total cost of goods available for sale, which is the sum of opening stock and purchases, and then subtract the closing stock.

  1. Calculate the total cost of goods available for sale:

    Total Cost of Goods Available for Sale = Opening Stock + Purchases

    = €75,000 + €450,000

    = €525,000

  2. Subtract the closing stock to find the cost of sales:

    Cost of Sales = Total Cost of Goods Available for Sale - Closing Stock

    = €525,000 - €115,000

    = €410,000

Step 2

Gross profit

99%

104 rated

Answer

To find the gross profit, subtract the cost of sales from the total sales:

Gross Profit = Sales - Cost of Sales

= €850,000 - €410,000

= €440,000

Join the Junior Cycle students using SimpleStudy...

97% of Students

Report Improved Results

98% of Students

Recommend to friends

100,000+

Students Supported

1 Million+

Questions answered

;