Question 35
Not-for-Profit OrganisationsUse the following information to answer questions 34 and 35.
The transactions of All Girls' Social Club for the year 2021 are as follows:
Bar Sales D 30,000; Bar purchases D 17,000 and Rent D 1,200
31st December: 2020 / 2021
Stock at bar: D 1,400 / D 1,600
Owing for bar supplies: D 6,500 / D 7,300
The net profit on the bar to be transferred to the income and expenditure account for the year ended 31st December 2021 is
- A.D 13,000.
- B.D 12,400.
- C.D 11,800.
- D.D 11,200.
Show the answer and explanation
Answer: D (D 11,200.)
Explanation
Cost of bar sales = 1,400 + 17,800 − 1,600 = 17,600; gross profit 12,400; less rent 1,200 = D 11,200.