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WAEC Financial Accounting 1998 Question 7

Question 7

Interpretation of Accounts

Debtors: N30,000
Creditors: N20,000
Opening Stock: N15,000
Closing Stock: N18,000
Wages: N3,000
Salaries: N10,000
Purchases: N30,000
Sales: N60,000
The net profit percentage is

  1. A.100%
  2. B.67%
  3. C.50%
  4. D.33%
  5. E.17%.
Show the answer and explanation

Answer: D (33%)

Explanation

Net profit = 30,000 − salaries 10,000 = 20,000; 20,000 ÷ 60,000 = 33%.