Question 7
Final Accounts of a Sole TraderUse the following information to answer questions 7 to 9.
The following transactions relate to Osei Enterprises for the year ended 31st December, 2020:
Purchases: D 160,000
Returns outwards: D 880
Carriage inwards: D 740
Returns inwards: D 620
Sales: D 195,000
Salaries: D 27,600
Closing stock: D 14,100
The cost of goods available for sale is
- A.D 159,860.
- B.D 159,380.
- C.D 159,260.
- D.D 159,120.
Show the answer and explanation
Answer: A (D 159,860.)
Explanation
No opening stock: 160,000 − 880 + 740 = D 159,860.