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JAMB Principles of Accounts 2013 Question 41

Question 41

Departmental Accounts

Department | K (₦) | Y (₦)
Opening stock | 2,500 | 800
Purchases | 120,000 | 100,000
Sales | 180,000 | 200,000
Salaries | 8,000 | 30,000
Closing stock | 3,000 | 1,500
Rate expenses of N1,500 are apportioned in the ratio 1:2.
What is the net profit for Y?

  1. A.₦52,000.
  2. B.₦68,300.
  3. C.₦68,800.
  4. D.₦69,700.
Show the answer and explanation

Answer: D (₦69,700.)

Explanation

Cost of sales Y = 800 + 100 000 − 1 500 = 99 300, gross profit 100 700. Less salaries 30 000 and rates 2/3 × 1 500 = 1 000: net profit ₦69 700.