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WAEC Financial Accounting 2025 Question 8

Question 8

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 average stock is

  1. A.D 20,020
  2. B.D 16,000
  3. C.D 14,620
  4. D.D 9,220
Show the answer and explanation

Answer: C (D 14,620)

Explanation

Closing stock = 9,220 + (60,540 − 1,740) − 48,000 = 20,020; average = (9,220 + 20,020) ÷ 2 = D 14,620.