WAEC Financial Accounting 2022 Question 15

Question 15

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 margin would be

  1. A.2/3
  2. B.3/5
  3. C.1/2
  4. D.2/5
Show the answer and explanation

Answer: D (2/5)

Explanation

Margin = gross profit ÷ sales = 8,000 ÷ 20,000 = 2/5.