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Chapter 20

Example 1: Solution (cont.)

Statement of profit or loss of GCH for the year ended 31 December 20X4
$ $
Sales 800,290
Less: Returns inwards (420)
–––––––
799,870
Opening inventory of finished goods 20,090
Factory cost of goods completed 566,905
–––––––
586,995
Less: closing inventory of finished goods (18,040)
–––––––
(568,955)
–––––––
Gross profit 230,915
Less:
Selling and distribution costs 25,286
Administration expenses 14,500
–––––––
(39,786)
–––––––
Net profit for the year 191,129

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