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WAEC Financial Accounting 1991 (August) Question 48

Question 48

Incomplete Records

1/1/86: Creditors ₦5,000; Stock ₦1,200
31/12/86: Creditors ₦8,000; Stock ₦1,100
Mark-up: 25%
Cash paid to creditors: ₦7,000

Cost of sales is

  1. A.₦10,100
  2. B.₦10,000
  3. C.₦9,200
  4. D.₦9,100
  5. E.₦7,000
Show the answer and explanation

Answer: A (₦10,100)

Explanation

1,200 + 10,000 − 1,100 = ₦10,100.