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WAEC Financial Accounting 2000 Question 46

Question 46

Final Accounts of a Sole Trader

Sales: N14,600
Purchases: N5,500
Returns inward: N150
Rent: N2,000
Salaries: N1,000
Discount received: N400
Closing stock: N250
Opening stock: N100
Net Profit is

  1. A.N9,100
  2. B.N7,850
  3. C.N7,750
  4. D.N6,500.
Show the answer and explanation

Answer: D (N6,500.)

Explanation

9,100 + discount received 400 − rent 2,000 − salaries 1,000 = N6,500.