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WAEC Commerce 2006 Question 13

Question 13

Business Calculations

Use the following information: The following information relates to Mallam Amidu Kachella for the year ended 31/12/2005 (₦): Opening stock 4,000; Purchases 16,000; Sales 30,000; Debtors 6,500; Creditors 4,200; Cash in hand 800; Closing stock 5,600; Bank overdraft 3,000.
The cost of goods sold is

  1. A.₦10,000
  2. B.₦14,400
  3. C.₦15,600
  4. D.₦20,200
Show the answer and explanation

Answer: B (₦14,400)

Explanation

Cost of goods sold = 4,000 + 16,000 − 5,600 = ₦14,400.