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JAMB Principles of Accounts 2017 Question 38

Question 38

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 expenses debited to the profit and loss account.

  1. A.₦17,000.
  2. B.₦23,000.
  3. C.₦30,000.
  4. D.₦26,000.
Show the answer and explanation

Answer: D (₦26,000.)

Explanation

Debits to profit and loss are carriage outwards 6,000 + expenses 20,000 = ₦26,000. Discount received is income and carriage inwards goes to the trading account.