GCE Financial Accounting 1990 Question 14

Use the following information extracted from TOM's books:
Stock at 1st January 1901: ₦6,500
Stock at 31st December 1901: ₦5,500
Creditors at 1st January 1901: ₦4,000
Creditors at 31st December 1901: ₦5,000
Cash paid for goods during the year: ₦20,000
Gross Profit: 25% on cost.
Administrative and selling expenses: ₦2,750

What is the amount charged in the Profit and Loss Account?

1. A.₦6,500
2. B.₦5,500
3. C.₦5,000
4. D.₦4,000
5. E.₦2,750.