WAEC Financial Accounting 2019 Question 47

Question 47

Departmental Accounts

Use the following information to answer questions 45 to 47. (Dept. A / Dept. B)
Sales: D 16,000 / D 24,000
Purchases: D 9,000 / D 6,000
Opening stock: D 600 / D 500
Closing stock: D 900 / D 600
Discount allowed: D 800 / D 1,200
Carriage inwards (proportion to sales): D 1,600
Net profit for Dept. B is

A.D 17,460.
B.D 16,660.
C.D 16,260.
D.D 15,940.

Show the answer and explanation

Answer: D (D 15,940.)

Explanation

Cost of sales = 500 + 6,000 + 960 − 600 = 6,860; gross profit 17,140 − discount 1,200 = D 15,940.