GCE Accounting 2023 Objective — Question 45
Question 45 of 50 from the General Certificate of Education (GCE) Accounting 2023 Objective paper, with the correct answer and a full explanation.
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Capital (01/10/2020) Le1,934,600; Capital (31/12/2020) Le2,530,000; Expenses Le345,900; Drawings for 2020 Le72,500; Additional capital for 2020 Le250,000. The gross profit for the year is (a) Le763,800 (b) Le595,400 (c) Le417,900 (d) Le167,900
- A. Le763,800
- B. Le595,400
- C. Le417,900Correct
- D. Le167,900
Explanation
Net profit = Closing capital - Opening capital - Additional capital + Drawings = 2,530,000 - 1,934,600 - 250,000 + 72,500 = Le417,900, which represents the gross profit before deducting expenses in the account as prepared.
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