Neco 2019 Financial Accounting Question 47
Practice objective / multiple choice question 47 from the 2019 Neco Financial Accounting examination.
For a merchandising business the following information is available for the year ended 31 December 2019:\n\n- Credit sales: \(N480,000\)\n- Opening stock: \(N120,000\)\n- Closing stock: \(N150,000\)\n- Gross profit margin: 25% of sales\n- Purchase returns: \(N20,000\)\n- Operating expenses (excluding depreciation): \(N45,000\)\n- Depreciation on equipment: \(N10,000\)\n- Net profit reported: \(N55,000\)\n\nThe purchases figure is missing from the records. In addition, a purchase discount of 2% on the gross purchase amount (before returns) is allowed. Determine the gross purchase amount (before returns and discounts), rounded to the nearest Naira.
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About This Question
This is Neco 2019 Financial Accounting Question 47. It is one of the objective questions from the 2019 Neco Financial Accounting examination.
Difficulty level: Hard .
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