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JAMB Principles of Accounts 1997 Question 18

Question 18

Final Accounts of a Sole Trader

Given:
Net profit ₦25 000
Cost of sales ₦25 000
Sales ₦85 000
Determine the total expenses.

  1. A.₦45 000
  2. B.₦35 000
  3. C.₦25 000
  4. D.₦15 000
Show the answer and explanation

Answer: B (₦35 000)

Explanation

Gross profit = 85 000 − 25 000 = 60 000. Expenses = 60 000 − 25 000 = ₦35 000.