WAEC Financial Accounting 1994 Question 36

Question 36

Incomplete Records

Bosun bought goods worth ₦500 and sold it at a margin of 20% on selling price. For how much did he sell the goods?

  1. A.₦100
  2. B.₦125
  3. C.₦500
  4. D.₦600
  5. E.₦625
Show the answer and explanation

Answer: E (₦625)

Explanation

Cost is 80% of selling price: 500 ÷ 0.8 = ₦625.