Neco 2021 Financial Accounting Question 50
Practice objective / multiple choice question 50 from the 2021 Neco Financial Accounting examination.
The following incomplete records are available for a sole trader for the year ended 31 December:\n- Opening inventory: \(30,000\).\n- Cash book shows cash receipts from customers of \(250,000\) and cash payments to suppliers of \(150,000\).\n- Salaries paid: \(40,000\).\n- Rent paid: \(20,000\).\n- Depreciation on equipment (cost \(100,000\)) at \(10\%\) per annum.\n- The gross profit ratio is known to be \(30\%\) of sales.\n- Closing inventory is \(25,000\).\nAssuming all purchases are paid in cash and all sales are cash, determine:\n\(a\) Total purchases during the year;\n\(b\) Total sales for the year;\n\(c\) Net profit for the year.
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About This Question
This is Neco 2021 Financial Accounting Question 50. It is one of the objective questions from the 2021 Neco Financial Accounting examination.
Difficulty level: Hard .
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