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WAEC Financial Accounting 2026 Question 8

Question 8

Final Accounts of a Sole Trader

Use the following information to answer questions 7 to 9.
Stock (1/1/2020): Le 160,000
Stock (31/12/2020): Le 240,000
Returns inwards: Le 16,000
Sales: Le 362,000
Returns outwards: Le 24,000
Gross profit: Le 64,000
The cost of goods available for sale is

  1. A.Le 546,000
  2. B.Le 538,000
  3. C.Le 522,000
  4. D.Le 514,000
Show the answer and explanation

Answer: C (Le 522,000)

Explanation

Cost of sales 282,000 + closing stock 240,000 = 522,000 (opening stock 160,000 + net purchases 362,000).