Question on: JAMB Accounting - 2024
| # | |
Stock 1/1/09 | 2200 |
Purchases | 18000 |
Sales | 27000 |
Salaries | 1500 |
Rejection in doubtful debts | 500 |
Office expenses | 1100 |
Other expenses | 1300 |
Stock 31/12/09 | 1000 |
The net profit is
A
#3,400
B
#4,400
C
#3,900
D
#3,800
Ask EduPadi AI for a detailed answer
Correct Option: A
To calculate the net profit:
1. Calculate Cost of Goods Sold (COGS):
Beginning Stock: 2200
Purchases: 18000
Ending Stock: 1000
COGS = 2200 + 18000 - 1000 = 19200
2. Calculate Gross Profit:
Sales: 27000
COGS: 19200
Gross Profit = 27000 - 19200 = 7800
3. Calculate Net Profit:
Total Expenses = 1500 + 500 + 1100 + 1300 = 4400
Net Profit = Gross Profit - Expenses = 7800 - 4400 = 3400
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