Question on: JAMB Accounting - 2024
The following balances were extracted from the books of Adama Ltd on 31st August 2007
| # | |
| Sales | 200000 |
| Drawings | 10000 |
| Land and building | 70000 |
| Furniture | 10000 |
| Debtors | 50000 |
| Creditors | 35000 |
| Capital | 85000 |
| Bank | 10000 |
| General expenses | 10000 |
| Stock (31-08-2007) | 10000 |
| Purchases | 140000 |
| Stock (1-09-2006) | 20000 |
Percentage of net profit to sale is
A
10%
B
40%
C
30%
D
20%
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Correct Option: D
1. COGS:
20,000 + 140,000 - 10,000 = ₦150,000
2. Gross Profit:
200,000 - 150,000 = ₦50,000
3. Net Profit:
50,000 - 10,000 = ₦40,000
4. Percentage of Net Profit to Sales:
(40,000 ÷ 200,000) × 100 = 20%
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