Question: Ben White, a retailer, adds 25 % to the cost of goods purchased for resale to arrive at his selling prices. His financial position at 30th June, 1961 was:
During the year ended 30th June, 1962 he:
(a) paid £11,675 for Goods for Resale.
(b) repaid £500 of the Loan from Z.
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(c) purchased a van for £700.
(d) withdrew from the bank £80 per month for personal expenses.
(e) paid into the Bank a legacy of £300.
(f) paid income tax £600 (treat as Drawings).
At 30th June, 1962, Stock at cost was £4,000, Debtors totalled £7,000 and creditors were £3,500; the balance at bank amounted to £1,950. Ascertain Ben White's Gross and Net Profits or Losses for the year ended 30th June, 1962.