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Upon completing her first year of business as a hair dresser, Sally report the following result.
£
Earnings from hairdressing 18,500
Rent (£1,000 per month) (9,000)
Assistant's salary (5,500)
Advertising (1,800)
Telephone (460)
Net profit 1,740
For the determination of above £1,740 net profit she has not taken into account three months' rent and as well as £500 salary of her assistant that remain unpaid as at the year end.
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