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WAEC Financial Accounting 1996 Question 42

Question 42

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
Net Sales is

  1. A.N14,100
  2. B.N14,000
  3. C.N13,500
  4. D.12,900
  5. E.N9,300.
Show the answer and explanation

Answer: D (12,900)

Explanation

Net sales = sales − returns inwards = 13,500 − 600 = N12,900.