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WAEC Financial Accounting 2017 Question 30

Question 30

Incomplete Records

A trader sells goods at an average margin of 20%. His cost of sales for the month amounted to ₦720,000. What is his profit figure?

  1. A.₦900,000
  2. B.₦864,000
  3. C.₦840,000
  4. D.₦180,000
Show the answer and explanation

Answer: D (₦180,000)

Explanation

A 20% margin means cost is 80% of sales: sales = 720,000 ÷ 0.8 = 900,000, so profit = ₦180,000.