Question 9
Final Accounts of a Sole TraderUse 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 sold is
- A.Le 298,000.
- B.Le 290,000.
- C.Le 282,000.
- D.Le 274,000
Show the answer and explanation
Answer: C (Le 282,000.)
Explanation
Net sales (362,000 − 16,000) = 346,000 minus gross profit 64,000 = Le 282,000.