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UI Post-UTME Financial Accounting 2025 (Model questions) Question 10

Question 10

Final Accounts of a Sole Trader

Study the following information: Opening stock: ₦40,000 Purchases: ₦200,000 Carriage inwards: ₦8,000 Returns outward: ₦12,000 Closing stock: ₦35,000. Which of these figures are included in computing cost of goods sold?

  1. A.I, II and III only
  2. B.All of the above
  3. C.I, II and IV only
  4. D.I and III only
Show the answer and explanation

Answer: B (All of the above)

Explanation

Cost of goods sold = opening stock + purchases + carriage inwards − returns outward − closing stock = ₦201,000, so all five figures are used.