WAEC Commerce 2002 Question 10

Question 10

Business Calculations

Use the following information: Ndu Enterprises has the following state of affairs: Stock 1st Jan. was N3,500 and 31st December was N3,000. His purchases was N30,000 and sales was N38,000 while a total of rent and electricity bills of N4,500 was paid.
What is the gross profit?

A.N8,000
B.N7,500
C.N6,500
D.N3,500

Show the answer and explanation

Answer: B (N7,500)

Explanation

Cost of goods sold = 3,500 + 30,000 − 3,000 = 30,500; gross profit = 38,000 − 30,500 = N7,500.