Assume that Deral Ltd is required to produce its financial statements on a monthly basis. The following transactions incurred during the month of August for the year of 2023. 

Given that only the below transactions took place, what would be the total net monthly profit that Deral Ltd will show on its monthly income statement at 31 of August. 

1. Purchased new inventory on credit for £600. 

2. Paid (in cash) rent in advance £150 for the quarter August-October. 

3. Made credit sales of £2,000. No cash sales were made in the month of August. Deral Ltd had inventory of £150 on 1st of August and £400 on 31st of August.

 4. Paid (in cash) monthly wages of £300 to sales assistants. 

5. Paid (in cash) monthly general expenses of £150. 

6. At the end of August, had accrued electricity bill cost of £150 for month's electricity consumption.

Answer rating: 100% (QA)

Lets calculate the total net monthly profit for Deral Ltd based on the provided transactions 1 Purch... View the full answer