Question on: JAMB Accounting - 2024
The following balances were extracted from the books of Onuoha, a trader, on 31st December 2005:
| Audit fee | 12000 |
| General expenses | 30000 |
| Purchases | 70000 |
| Commission paid | 30000 |
| Stock (1 - 01 - 2005) | 10000 |
| Stock (31 - 12 - 2005) | 15000 |
| Sales | 120000 |
The gross profit is:
A
#35,000
B
#45,000
C
#55,000
D
#25,000
Ask EduPadi AI for a detailed answer
Correct Option: C
To calculate gross profit:
Cost of Goods Sold (COGS)
COGS = Opening Stock + Purchases - Closing Stock
\(10,000 + 70,000 - 15,000 = 65,000\)
Gross Profit
Gross Profit = Sales - COGS
\(120,000 - 65,000 = 55,000\)
Thus, the gross profit is ₦55,000.
Add your answer
Please share this, thanks!
No responses