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JAMB Principles of Accounts 2008 Question 16

Question 16

Incomplete Records

Trading Account (Extract)
Opening stock ₦19 500; Add purchases ₦68 700 = ₦88 200
Less closing stock ?
Cost of goods sold ?
Gross profit c/d ?
Sales ₦96 000
The gross profit margin is 20%.
Determine the closing stock

  1. A.N76 800
  2. B.N67 800
  3. C.N14 100
  4. D.N11 400
Show the answer and explanation

Answer: D (N11 400)

Explanation

Cost of goods sold = 96 000 − 19 200 = ₦76 800. Closing stock = 88 200 − 76 800 = ₦11 400.