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WAEC Financial Accounting 2018 Question 24

Question 24

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 gross profit or loss is

  1. A.Le 30,000 gross profit.
  2. B.Le 20,000 gross profit.
  3. C.Le 10,000 gross loss.
  4. D.Le 30,000 gross loss.
Show the answer and explanation

Answer: A (Le 30,000 gross profit.)

Explanation

120,000 − 90,000 = Le 30,000 gross profit.