Question on: JAMB Accounting - 2024
Use the following information to answer this question
The following are the final accounts of a trading organisation, Wazobi Ventures, for the year ended 30th June, 19x8:
| ₦ | ₦ | |
| Sales less: cost of goods sold | 233,000 170,000 | |
| 63,000 | ||
| less: Overhead Expenses Admin expenses Selling expenses Other overhead expenses | 16,800 15,000 6,200 | |
| Net profit | 25,000 |
Calculate the net profit on percentage of expenses.
A
60%
B
25%
C
13%
D
65.7%
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Correct Option: D
To calculate the net profit as a percentage of expenses:
1. Calculate Total Expenses:
Administrative Expenses: ₦16,800
Selling Expenses: ₦15,000
Other Overhead Expenses: ₦6,200
Total Expenses = ₦38,000
2. Net Profit: ₦25,000
3. Net Profit Percentage:
\((\text{Net Profit} / \text{Total Expenses}) \times 100\)
\((25,000 / 38,000) \times 100 = 65.79\%\)
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