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WAEC Financial Accounting 1995 Question 14

Question 14

Interpretation of Accounts

Use the following information:
Sales: ₦45,000
Opening stock: ₦20,000
Closing stock: ₦30,000
Expenses: ₦15,000
Fixed Assets: ₦40,000
Debtors: ₦10,000
Creditors: ₦5,000
Purchases: ₦25,000

Gross profit percentage is

  1. A.100%
  2. B.67%
  3. C.50%
  4. D.33%
  5. E.22%.
Show the answer and explanation

Answer: B (67%)

Explanation

30,000 ÷ 45,000 × 100 = 67%.