(a)Distinguish between Authorized Capital and Called-up Capital (b) Use the following information to answer the questions that follow: XYZ Limited is a trad...

Question 1 Report

(a)Distinguish between Authorized Capital and Called-up Capital

(b) Use the following information to answer the questions that follow: XYZ Limited is a trading company. The following transactions took place in the month of February:
Purchase of goods -
32 suitcases at N3,500 each
42 shirts at N800 each.
Additional information:
 (i) The cost of transporting goods to the firm's premises was #2,500 
(ii) Two workers of the firm were paid wages and salaries of 4,500 each.
(iii) Total sales revenue was N180,000. You are required to calculate the:  (a) gross profit  (b) net profit.