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WAEC Financial Accounting 2020 Question 17

Question 17

Incomplete Records

A trader adds 25% on cost as profit. The profit on sales of $300,000 would be

  1. A.$75,000
  2. B.$60,000
  3. C.$50,000
  4. D.$25,000.
Show the answer and explanation

Answer: B ($60,000)

Explanation

25% on cost = 20% of sales: 300,000 × 1/5 = $60,000.