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JAMB Principles of Accounts 2010 Question 15

Question 15

Final Accounts of a Sole Trader

Sales ₦10,900
Stock 1/1 ₦1,000
Stock 31/12 ₦2,000
Purchases ₦4,000
Returns outwards ₦800
Returns inwards ₦600
Carriage outwards ₦300
Carriage inwards ₦200
The cost of goods available for sale is

  1. A.₦4 600
  2. B.₦5 000
  3. C.₦6 400
  4. D.₦4 400.
Show the answer and explanation

Answer: D (₦4 400.)

Explanation

Opening stock 1 000 + purchases 4 000 − returns outwards 800 + carriage inwards 200 = ₦4 400.