WAEC Financial Accounting 1991 (August) Question 49

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

Gross profit is

1. A.₦2,800
2. B.₦2,525
3. C.₦2,500
4. D.₦2,000
5. E.₦1,750.