JAMB Principles of Accounts 2006 Question 43

Head office sends goods to its branch at cost plus mark-up of 25%. A debit of ₦40 000 to the branch stock account in the head office books will indicate that the head office has sent goods with a profit of

1. A.₦4 000
2. B.₦6 000
3. C.₦10 000
4. D.₦8 000.