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WAEC Financial Accounting 2024 Question 7

Question 7

Incomplete Records

Use the following information to answer questions 7 to 9.
Opening stock: Le 6,000
Sales: Le 180,000
Closing stock: Le 4,200
Mark-up is 33⅓%
The value of purchases is

  1. A.Le 139,200
  2. B.Le 135,000
  3. C.Le 133,200
  4. D.Le 127,200
Show the answer and explanation

Answer: C (Le 133,200)

Explanation

Cost of sales = 180,000 × 3/4 = 135,000; purchases = 135,000 + 4,200 − 6,000 = Le 133,200.