Day: September 30, 2024

Lucy’s net assets have increased by £127,000 over the year.

She took drawings of £47,000 and paid in to the business the proceeds of a personal life insurance policy amounting to £25,000.

Her net profit for the year was?

Select ONE answer:

1. £815
2. £810
3. £825
4. £820

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct – There are only (25 – 10 + 10 – 10) = 15 units in stock at the end of January. 10 of these are valued at £55, and the remainder at £54: (10 × £55) + ( 5 × £54) = £820

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