Question: T. is proposing to set up in business as a retailer and is negotiating for a shop, the rent of which is £450 per annum and the Rates £375 per annum. He expects that he will need to employ an assistant at a wage of £8 per week and that the incidental expenses of the business will be £50
Re-printed by courtesy of the Royal Society of Arts (R.S.A.) per annum. The rate of gross profit he expects to make on Sales is 25 % (i.e. before deducting expenses or wages). Assuming that T. will make a Net Profit of £1,000 and that, at the end of the year he will have a stock of £500, draft a pro forma Trading and Profit & Loss Account for the first year.