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WAEC Financial Accounting 1996 Question 41

Question 41

Final Accounts of a Sole Trader

Stock 1/1/93: N4,500
Sales: N13,500
Purchases: N5,000
Carriage inwards: N500
Stock 31/12/93: N4,200
Returns inwards: N600
Cost of sales is

  1. A.N10,000
  2. B.N9,500
  3. C.N5,800
  4. D.N5,300
  5. E.N5,200.
Show the answer and explanation

Answer: C (N5,800)

Explanation

Cost of sales = 4,500 + 5,000 + 500 − 4,200 = N5,800.