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WAEC Financial Accounting 2008 Question 24

Question 24

Final Accounts of a Sole Trader

Sales Le183,400
Purchases Le168,000
Opening stock Le20,100
Closing stock Le48,900
Carriage outwards Le2,400
Carriage inwards Le5,000
Returns inwards Le10,000
Expenses Le15,000
Returns outwards Le8,000
The gross profit is

  1. A.Le 47,200
  2. B.Le 42,200
  3. C.Le 37,200
  4. D.Le 19,800.
Show the answer and explanation

Answer: C (Le 37,200)

Explanation

Net sales 173,400 − cost of sales 136,200 = Le37,200.