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WAEC Financial Accounting 2018 Question 23

Question 23

Final Accounts of a Sole Trader

Use the following information to answer questions 23 and 24.
Sales: Le 120,000
Purchases: Le 100,000
Opening stock: Le 10,000
Closing stock: Le 20,000
The cost of goods sold is

  1. A.Le 120,000.
  2. B.Le 110,000.
  3. C.Le 90,000.
  4. D.Le 30,000.
Show the answer and explanation

Answer: C (Le 90,000.)

Explanation

10,000 + 100,000 − 20,000 = Le 90,000.