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JAMB Principles of Accounts 2006 Question 42

Question 42

Final Accounts of a Sole Trader

Boro Limited apportions ⅙ of its rent for factory and 10% of the balance for warehouse. If rent paid is ₦48 600, how much is paid for warehouse?

  1. A.₦8 150
  2. B.₦4 860
  3. C.₦4 100
  4. D.₦4 050.
Show the answer and explanation

Answer: D (₦4 050.)

Explanation

Factory: ⅙ × 48 600 = ₦8 100. Balance = ₦40 500. Warehouse = 10% × 40 500 = ₦4 050.