Question 15
Final Accounts of a Sole TraderGiven:
Stock 1/1 ₦20,000
Add purchases ₦250,000
Cost of goods available for sale ₦270,000
Less stock 31/12 ₦40,000
Cost of goods sold ₦230,000
Rent expenses ₦35,000
Net sales ₦370,000
Find the gross profit.
- A.₦370,000
- B.₦230,000
- C.₦150,000
- D.₦140,000
Show the answer and explanation
Answer: D (₦140,000)
Explanation
Gross profit = net sales 370 000 − cost of goods sold 230 000 = ₦140 000.