Neco 2021 Financial Accounting Question 9
Practice objective / multiple choice question 9 from the 2021 Neco Financial Accounting examination.
A sole trader's books are incomplete. The following information is available: Opening stock \(\text{₦}30{,}000\). Net sales \(\text{₦}150{,}000\). Gross profit is known to be \(25\%\) of sales. Purchases are missing. Closing stock \(\text{₦}20{,}000\). Operating expenses (excluding depreciation) \(\text{₦}20{,}500\). Depreciation on equipment \(\text{₦}5{,}000\). Net profit for the year is \(\text{₦}12{,}000\). Using the gross‑profit method, determine the amount of purchases for the year.
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About This Question
This is Neco 2021 Financial Accounting Question 9. It is one of the objective questions from the 2021 Neco Financial Accounting examination.
Difficulty level: Hard .
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