Neco 2024 Financial Accounting Question 22

Practice objective / multiple choice question 22 from the 2024 Neco Financial Accounting examination.

Neco 2024 Financial Accounting Objective / Multiple Choice Hard Difficulty
Question 22 NECO • 2024 • FINANCIAL_ACCOUNTING • objective

During the year a sole trader's trial balance shows total debits of ₦1,200,000 and total credits of ₦1,200,000. The only account not shown is Purchases. The other debit balances are Opening Stock ₦180,000, Expenses ₦140,000 and Closing Stock ₦120,000. The credit balances are Sales ₦900,000 and Capital ₦300,000. (a) Determine the amount of Purchases. (b) Compute the gross profit for the year.

Answer Options

A. Purchases 800,000; Gross profit 40,000
Correct Answer B. Purchases 760,000; Gross profit 80,000
C. Purchases 760,000; Gross profit 100,000
D. Purchases 720,000; Gross profit 80,000
Correct Answer
B
Correct Option:
Purchases 760,000; Gross profit 80,000

About This Question

This is Neco 2024 Financial Accounting Question 22. It is one of the objective questions from the 2024 Neco Financial Accounting examination.

Difficulty level: Hard .

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