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18

From the following balances you are required to prepare an Income Statement and answer the following questions.

Account details	Amount in OMR
Sales	5250
Purchases	4100
Purchase returns	100
Sales returns	250
Opening stock	1000
Closing stock	1500
Wages	250
Salaries	300
Rent expenses	200
Office expenses	100
Discount received	150
Commission received	200

Q1. What is the amount of net sales?

A\ OMR 15,000

B\ OMR 10,000

C\ OMR 5000

D\ OMR 50,000

Q2. What is the amount of Gross profit?

A\ OMR 2250

B\ OMR 12,500

C\ OMR 1250

D\ OMR 2500

Q3. What is the amount of total indirect expenses?

A\ OMR 1200

B\ OMR 300

C\ OMR 600

D\ OMR 6000

Q4. What is the amount of indirect revenues?

A\ OMR 3500

B\ OMR 350

C\ OMR 700

D\ OMR 250

Q5. What is the amount of net profit?

A\ OMR 10,000

B\ OMR 500

C\ OMR 1000

D\ OMR 1500