Question 45
Final Accounts of a Sole TraderGiven:
(₦)
Sales 195,200
Stock 1st January 34,000
Purchases 126,000
Sales returns 1,200
Purchases returns 2,000
If the gross profit is ₦66,000, what is the value of stock at 31st December?
- A.₦30,000
- B.₦40,000
- C.₦50,000
- D.₦20,000.
Show the answer and explanation
Answer: A (₦30,000)
Explanation
Net sales = 194 000, so cost of sales = 194 000 − 66 000 = 128 000. Goods available = 34 000 + 124 000 = 158 000. Closing stock = ₦30 000.