Use this information to answer this question. Below is the trading, profit and loss Account particulars of Amadi peterside and Brothers for the year ended 31st December 1986.<br/>Opening stock = 1000<br/>Purchases = 7000<br/>Sales = 8000<br/>Closing stock = 3000<br/>Trading Expenses:<br/>Electricity = 135<br/>Salaries = 875<br/>Rent = 180<br/>Depreciation = 210<br/>From the figures given, calculate Net profit
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Correct Answer: Option C
Explanation:
The gross profit is N3,000. The total trading expenses are:<br/><br/>135 + 875 + 180 + 210 = N1,400.<br/><br/>Net profit = Gross profit - Total expenses<br/>= 3,000 - 1,400<br/>= N1,600.<br/><br/>Therefore, the net profit is N1,600.
The gross profit is N3,000. The total trading expenses are:<br/><br/>135 + 875 + 180 + 210 = N1,400.<br/><br/>Net profit = Gross profit - Total expenses<br/>= 3,000 - 1,400<br/>= N1,600.<br/><br/>Therefore, the net profit is N1,600.