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WAEC Commerce 2022 Question 14

Question 14

Business Calculations

Use the information below to answer questions 13 and 14
Sales ₦50,000.00
Debtors ₦10,000.00
Cash-in-hand ₦5,000.00
Opening stock ₦30,000.00
Creditors ₦8,000.00
Purchases ₦16,000.00
Overdraft ₦12,000.00
Closing stock ₦10,000.00
Calculate the gross profit.

  1. A.₦35,000.00
  2. B.₦20,000.00
  3. C.₦15,000.00
  4. D.₦14,000.00
Show the answer and explanation

Answer: D (₦14,000.00)

Explanation

Cost of goods sold = 30,000 + 16,000 − 10,000 = ₦36,000. Gross profit = sales − cost of goods sold = 50,000 − 36,000 = ₦14,000.