Question 3

Jeopang is an entrepreneur who recently joined a university to study for an accounting degree. Before commencing his studies, he runshis own fashion company and has decided to continue whilststudying. He has purchased 800 plain white t-shirts for 20 each and 700 printing dyes, which is enough for the 400 t-shirts at the beginning of October 2021.He is planning on selling each dyed t-shirt for 26 and is confident that he can sell them all. By the end of October 2021, he has 200 t-shirts and a fifth (1/5) of the dye left.

YOU ARE REQUIRED TO:

Calculate the profit that Jeopanghas made up to the end of October using both the cash and accruals accounting method.