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JAMB Principles of Accounts 2011 Question 26

Question 26

Final Accounts of a Sole Trader

Trading account for the year ended 31st December 2009
Opening stock ₦32 000
Purchases ₦40 000; Carriage inwards ₦1 000 = ₦41 000; Less returns ₦2 000 = ₦39 000
Cost of goods available for sale ??
Less closing stock ₦9 000
Cost of goods sold ??
Sales ₦48 000; Less returns ₦2 000
Calculate the cost of goods sold.

  1. A.₦61 000
  2. B.₦58 000
  3. C.₦62 000
  4. D.₦57 000
Show the answer and explanation

Answer: C (₦62 000)

Explanation

Goods available = 32 000 + 39 000 = ₦71 000; less closing stock 9 000 = ₦62 000.