Sole Trader Financial Statements is one of 9 topics in the Grade 10 Accounting CAPS syllabus, covered across 3 lessons on Study Vault. Below are real practice questions from this topic with full worked answers.
Sample practice questions
Easy
1. Gross Profit is calculated as:
Sales minus Cost of Sales
Sales minus Operating Expenses
Sales plus Cost of Sales
Net Profit plus Cost of Sales
Answer: Sales minus Cost of Sales — Gross Profit = Sales - Cost of Sales, the profit made from trading before operating expenses are considered.
Easy
2. Unlike a company, a sole trader's Income Statement does NOT include:
Income tax charged on the business itself
Sales
Operating expenses
Gross Profit
Answer: Income tax charged on the business itself — A sole trader is taxed personally by SARS on their own income; the business itself is not taxed separately, unlike a company, so no income tax line appears on a sole trader's Income Statement at this level.
Medium
3. A sole trader had Sales of R120 000 and Cost of Sales of R70 000. Calculate the Gross Profit, in rand.
