Neco Model Questions Vol1 2021 Financial Accounting Question 38

Practice objective / multiple choice question 38 from the 2021 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2021 Financial Accounting Objective / Multiple Choice Hard Difficulty
Question 38 NECO_MODEL_QUESTIONS_VOL1 • 2021 • FINANCIAL_ACCOUNTING • objective

A trading business has the following incomplete records for the year ended 31 December: - Opening stock: N120,000 - Closing stock: N150,000 - Cash sales: N180,000 - Cash purchases: N80,000 - Total expenses (excluding cost of goods sold): N90,000 - Net profit for the year: N60,000 - Gross profit ratio: \(30\%\) of sales Assuming that the remaining sales and purchases are on credit, determine the amount of credit sales and the amount of credit purchases for the year.

Answer Options

Correct Answer A. Credit sales = N320,000; credit purchases = N300,000
B. Credit sales = N340,000; credit purchases = N320,000
C. Credit sales = N300,000; credit purchases = N280,000
D. Credit sales = N310,000; credit purchases = N290,000
Correct Answer
A
Correct Option:
Credit sales = N320,000; credit purchases = N300,000

About This Question

This is Neco Model Questions Vol1 2021 Financial Accounting Question 38. It is one of the objective questions from the 2021 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Hard .

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