Question 4
Final Accounts of a Sole TraderIncome Statement for the year ended June 30, 2001
Office rent ₦20,000
NEPA (Light) ₦15,000
Salary of staff ₦120,000
Miscellaneous Expenses ?
Net income ?
Revenue ₦820,000
Miscellaneous expenses is 10% of revenue.
Calculate the net income
- A.₦583,000
- B.₦563,000
- C.₦483,000
- D.₦683,000
Show the answer and explanation
Answer: A (₦583,000)
Explanation
Miscellaneous = 10% × 820 000 = 82 000. Net income = 820 000 − (20 000 + 15 000 + 120 000 + 82 000) = ₦583 000.