Use the information below to answer question
Sales………………………………N10,900
Stock 1/1…………………………..N1, 000
Stock 31/12…………………………N2, 000
Purchases…………………………..N4, 000
Returns outwards…………………….N800
Returns inwards……………………..N600
Carriage outwards……………………N300
Carriage inwards…………………….N200
Find the gross profit.
- A.
N7 800 - B.
N7 900 - C.
N9700 - D.
5700
Correct Answer: Option B
Explanation
sales 10900
– Returns inwards 600
-carriage outwards 300
10000
opening stock 1000
purchase 4000
– returns outwards 800 3200
+ carriage inwards 200
goods avail. for sale 4400
less; closing stock 2000
carriage outwards 300 2300 2100
Gross profit 7900