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WAEC Financial Accounting 2011 Question 8

Question 8

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 gross profit is

  1. A.GH¢12,300
  2. B.GH¢11,978
  3. C.GH¢10,022
  4. D.GH¢ 9,978
Show the answer and explanation

Answer: C (GH¢10,022)

Explanation

Sales 20,000 − cost of goods sold 9,978 = GH¢10,022.