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JAMB Principles of Accounts 2017 Question 37

Question 37

Final Accounts of a Sole Trader

Use the information below to answer questions 37 and 38.
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.₦76,000
  4. D.₦82,000.
Show the answer and explanation

Answer: D (₦82,000.)

Explanation

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