XYZ Ltd's total sales was #100,000. It had opening stock of #20,000 and closing stock of #22,000. It bought goods worth #80,000 and paid #2,000 for rent. XY...

Answer Details

To calculate the net profit of XYZ Ltd, we need to subtract all the expenses from the total sales, taking into account the value of the opening and closing stock. The calculation is as follows: Total sales = #100,000 Cost of goods sold = Opening stock (#20,000) + Goods bought (#80,000) - Closing stock (#22,000) = #78,000 Gross profit = Total sales - Cost of goods sold = #22,000 Expenses = Rent (#2,000) Net profit = Gross profit - Expenses = #20,000 Therefore, the net profit of XYZ Ltd is #20,000.