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WAEC Financial Accounting 2022 Question 46

Question 46

Final Accounts of a Sole Trader

Use the following information to answer questions 45 to 47
Trading Account of Umeh Enterprises for the year ended 31st December 2019 (GH¢)
Opening Stock 10,000
Purchases 120,000
130,000
Closing stock (22,800)
Cost of goods sold -----
Gross profit -----
196,000
Sales 200,000
Less: (4,000)
196,000
The gross profit is

  1. A.GH¢152,800
  2. B.GH¢107,200
  3. C.GH¢88,800
  4. D.GH¢43,200
Show the answer and explanation

Answer: C (GH¢88,800)

Explanation

Net sales 196,000 − 107,200 = GH¢88,800.