passwella.
Menu

WAEC Financial Accounting 2011 Question 6

Question 6

Final Accounts of a Sole Trader

Use the following information to answer questions 6 to 8.
Opening stock: GH¢4,000
Purchases: GH¢12,000
Carriage inwards: GH¢300
Returns outwards: GH¢322
Sales: GH¢20,000
Closing stock: GH¢6,000

The cost of goods sold is

  1. A.GH¢16,300
  2. B.GH¢15,978
  3. C.GH¢ 10,022
  4. D.GH¢ 9,978
Show the answer and explanation

Answer: D (GH¢ 9,978)

Explanation

Goods available 4,000 + 12,000 + 300 − 322 = 15,978; less closing stock 6,000 = GH¢9,978.