Waec Model Questions Vol1 2024 Financial Accounting Question 22

Practice objective / multiple choice question 22 from the 2024 Waec Model Questions Vol1 Financial Accounting examination.

Waec Model Questions Vol1 2024 Financial Accounting Objective / Multiple Choice Hard Difficulty
Question 22 WAEC_MODEL_QUESTIONS_VOL1 • 2024 • FINANCIAL_ACCOUNTING • objective

A merchandising firm has opening stock of ₦1,500,000 and net sales (after returns) of ₦9,000,000. The firm's historical gross‑profit ratio is 40% of sales. Purchases during the year were recorded at ₦4,200,000; purchase returns amounted to ₦300,000 and freight‑in was ₦120,000. After applying the gross‑profit method, the physical count showed that the actual closing stock is 5% less than the amount computed by the method. Determine the actual closing‑stock value.

Answer Options

A. 108000
Correct Answer B. 114000
C. 120000
D. 126000
Correct Answer
B
Correct Option:
114000

About This Question

This is Waec Model Questions Vol1 2024 Financial Accounting Question 22. It is one of the objective questions from the 2024 Waec Model Questions Vol1 Financial Accounting examination.

Difficulty level: Hard .

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