Exam Practice Question- Chan’s Bike Hire Co.
Francis Chan runs a bike hire company called Chan’s Bike Hire Co. in a small local town. Construct
a profit and loss account for Chan’s Bike Hire Co. from the data below, for the year ending 31
August 2022. [4 marks]
$
Cost of sales (COS)
50,000
Dividends
35,000
Expenses
20,000
Interest
10,000
Retained profit
65,000
Sales revenue
200,000
Tax
20,000
Statement of profit or loss for Chan’s Bike Hire Co., for the year ended 31 August 2022
$
Sales revenue
Cost of sales (COS)
Gross profit
Expenses
Profit before interest and tax
Interest
Profit before tax
Tax
Profit for period
Dividends
Retained profit