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Case: David incorporated XYZ Ltd and recorded following transactions in March 2023
March 2023 David invested $100.000 of his own money into XYZ Ltd. March 2023 He borrowed $60 000 from the bank at 10 per cent per annum for one year with interest to be repaid at the end of the loan. March 2023 He sent Invoices for $90 000 to customers for work performed. By 31 March he had received $40 000 and expected the other $50 000 in April 2023. Cost of sales is $20,000. March 2023 He bought a computer for $19,200 that has an expected useful life of four years. March 2023 He paid $6 500 in wages. March 2023 He paid other expenses of $9 000. March 2023 He received a $1000 bill for advertising (appeared in newspapers in March; will be paid in April 2023).
Question Using the concepts of accrual accounting, calculate XYZ Ltd's profit for the month ending 31 March 2023
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