Reference no: EM131537616

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.

Re-printed by courtesy of the Royal Society of Arts (R.S.A.).

Re-printed by courtesy of the Society of Incorporated Accountants (S.A.A.).

(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.