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WAEC Financial Accounting 2022 Question 14

Question 14

Incomplete Records

Use the following information to answer questions 14 and 15
A trader bought goods worth ₦16,000 and sold three-quarter of it for ₦20,000
The gross profit is

  1. A.₦12,000
  2. B.₦8,000
  3. C.₦6,000
  4. D.₦4,000
Show the answer and explanation

Answer: B (₦8,000)

Explanation

Cost of goods sold = 3/4 × 16,000 = 12,000; gross profit = 20,000 − 12,000 = ₦8,000.