passwella.
Menu

WAEC Commerce 2001 Question 36

Question 36

Business Calculations

Use the following information: XY Ltd's stock as at 1st February, 1998, was N2,000 and as at 31st December was N4,000. It purchased goods worth N6,000 during the year and paid N1,000 for rent.
The cost of goods sold is

  1. A.N2,000
  2. B.N4,000
  3. C.N6,000
  4. D.N8,000
Show the answer and explanation

Answer: B (N4,000)

Explanation

Cost of goods sold = opening stock 2,000 + purchases 6,000 − closing stock 4,000 = N4,000.