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WAEC Financial Accounting 1991 (August) Question 34

Question 34

Incomplete Records

The cost of goods sold at ₦32,000. The gross profit is 25% on cost. Returns inwards amount to ₦2,000. What is the value of sales?

  1. A.₦42,500
  2. B.₦40,500
  3. C.₦40,000
  4. D.₦38,000
  5. E.₦32,000
Show the answer and explanation

Answer: C (₦40,000)

Explanation

Net sales = 32,000 + 25% × 32,000 = ₦40,000 (the net figure after returns).