Neco Model Questions Vol1 2020 Financial Accounting Question 22

Practice objective / multiple choice question 22 from the 2020 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2020 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 22 NECO_MODEL_QUESTIONS_VOL1 • 2020 • FINANCIAL_ACCOUNTING • objective

For a trading year the following information is given:\nSales: \(\text{₦}200{,}000\)\nSales returns: \(\text{₦}20{,}000\)\nOpening stock: \(\text{₦}10{,}000\)\nPurchases: \(\text{₦}120{,}000\)\nPurchase returns: \(\text{₦}10{,}000\)\nCarriage inwards: \(\text{₦}8{,}000\)\nClosing stock is such that gross profit equals 30% of net sales.\nDepreciation on machinery (cost \(\text{₦}40{,}000\)) is charged at 10% per annum.\nSalaries: \(\text{₦}12{,}000\)\nRent: \(\text{₦}8{,}000\)\nInterest on loan: \(\text{₦}1{,}500\)\nFind the net profit for the year.

Answer Options

A. 27500
Correct Answer B. 28500
C. 26000
D. 29500
Correct Answer
B
Correct Option:
28500

About This Question

This is Neco Model Questions Vol1 2020 Financial Accounting Question 22. It is one of the objective questions from the 2020 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Medium .

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