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JAMB Principles of Accounts 2011 Question 23

Question 23

Incomplete Records

Incomplete Record (Extract)
Sales ₦10 600
Rent ₦200
Depreciation of vehicle (cost N5000) 10%
Gross profit margin is 20%
What is the cost of goods sold?

  1. A.₦4 800
  2. B.₦8 480
  3. C.₦2 320
  4. D.₦9 900
Show the answer and explanation

Answer: B (₦8 480)

Explanation

Gross profit = 20% × 10 600 = ₦2 120, so cost of goods sold = 10 600 − 2 120 = ₦8 480.