passwella.
Menu

WAEC Financial Accounting 1994 Question 33

Question 33

Final Accounts of a Sole Trader

Debtors on 1st January was ₦1,490 and sales for the year was ₦5,760. Cash received from debtors during the year was ₦5,410. Bad debt written off was ₦410. Discount allowed amounted to ₦320. What was the net profit for that year, assuming a gross profit of ₦3,650 was made?

  1. A.₦2,920
  2. B.₦3,240
  3. C.₦3,330
  4. D.₦5,340
  5. E.₦5,440.
Show the answer and explanation

Answer: A (₦2,920)

Explanation

3,650 − bad debts 410 − discount allowed 320 = ₦2,920.