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GCE Financial Accounting 1989 Question 47

Question 47

Manufacturing Accounts

Use the Manufacturing and Trading Accounts shown (X marks figures you must work out). What is the Gross Profit?

Diagram for this question
  1. A.₦33,000
  2. B.₦28,800
  3. C.₦28,500
  4. D.₦26,400
  5. E.₦22,800
Show the answer and explanation

Answer: A (₦33,000)

Explanation

Gross profit = 20% of net sales 165,000 = ₦33,000 (or 165,000 − 132,000).