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WAEC Financial Accounting 2011 Question 7

Question 7

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 available for sale 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: B (GH¢15,978)

Explanation

Opening stock 4,000 + purchases 12,000 + carriage inwards 300 − returns outwards 322 = GH¢15,978.