Question on: JAMB Accounting - 2019
Abelawo ltd operates a retail branch at Aba. All purchases are made by the head office in Onitsha and goods are charged to the branch at cost plus 50%. During the year ended. Goods sent to branch at invoiced price is ₦30,870, cash sales ₦13,020 and Bad debt amounted to 129. From the following, what is the profit?
A
20,580
B
10,290
C
7980
D
30,870
Ask EduPadi AI for a detailed answer
Correct Option: B
Given that the goods sent to branch = ₦30,870, let's convert mark-up to margin
| 50
100 | = | 1
2 | = | 1
2 + 1 | = | 1
3 |
| Profit | = | 1
3 | × | 30,870 |
= ₦10,290
Hence, profit = ₦10,290
Add your answer
Please share this, thanks!
No responses