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JAMB Principles of Accounts 2013 Question 15

Question 15

Final Accounts of a Sole Trader

Sales ₦232,000
Opening stock ₦28,000
Purchases ₦128,000
Carriage inwards ₦4,000
Carriage outwards ₦6,000
Closing stock ₦10,000
Discount received ₦18,000
Expenses ₦20,000
Calculate the gross profit.

  1. A.₦100,000.
  2. B.₦86, 000.
  3. C.₦82,000.
  4. D.₦76,000.
Show the answer and explanation

Answer: C (₦82,000.)

Explanation

Cost of sales = 28 000 + 128 000 + 4 000 − 10 000 = 150 000. Gross profit = 232 000 − 150 000 = ₦82 000.