WAEC Financial Accounting 2016 Question 26

Question 26

Incomplete Records

Offei, a petty trader, sold goods for GH¢36,240. The gross profit being 33⅓% on cost. What was the cost price?

  1. A.GH¢ 45,300
  2. B.GH¢ 28,992
  3. C.GH¢27,180
  4. D.GH¢ 24,160
Show the answer and explanation

Answer: C (GH¢27,180)

Explanation

Sales = cost × 4/3, so cost = 36,240 × 3/4 = GH¢27,180.