Reference no: EM132993256

Question - Rose Ltd was set up on 1 May 20X8 with opening capital of £1,000. During the month of May, it entered into the following transactions:

Purchases of goods for resale, on credit - £12,100

Payments to credit suppliers - £8,400

Sales on credit - £16,200

Sales in cash - £1,300

Receipts from credit customers - £3,200

Non-current assets purchased for cash - £1,500

Depreciation - £100

Other expenses, all paid in cash - £800

Required - What is the net profit earned by Rose Ltd in the month of May 20X8?

a) £3,200

b) £5,400

c) £4,500

d) £3,000