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WAEC Financial Accounting 2015 Question 29

Question 29

Incomplete Records

Use the following information: (1/7/10 / 30/6/11) Stock D1,460 / D4,200; Motor van D3,600 / D3,200; Creditors D600 / D700. Drawings during the year amounted to D1,500.
Net profit for the year is

  1. A.D12,260.
  2. B.D3,740.
  3. C.D2,440.
  4. D.D2,040.
Show the answer and explanation

Answer: B (D3,740.)

Explanation

Net profit = closing capital 6,700 + drawings 1,500 - opening capital 4,460 = D3,740.