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WAEC Financial Accounting 2025 Question 7

Question 7

Final Accounts of a Sole Trader

Use the following information to answer questions 7 to 9.
Opening stock: D 9,220
Sales: D 66,930
Returns outwards: D 1,740
Returns inwards: D 2,930
Gross profit: D 16,000
Purchases: D 60,540
The cost of goods sold is

  1. A.D 64,000
  2. B.D 53,860
  3. C.D 50,930
  4. D.D 48,000
Show the answer and explanation

Answer: D (D 48,000)

Explanation

Net sales = 66,930 − 2,930 = 64,000; cost of goods sold = 64,000 − 16,000 gross profit = D 48,000.