Neco Model Questions Vol1 2021 Financial Accounting Question 48
Practice objective / multiple choice question 48 from the 2021 Neco Model Questions Vol1 Financial Accounting examination.
A merchandising firm has the following data for the year ended 31 December: Sales = ₦500,000; gross profit ratio = 30 % of sales; opening stock = ₦80,000; closing stock = ₦70,000; cash payments to suppliers during the year = ₦300,000; trade creditors at year‑end = ₦40,000; purchase returns are 10 % of the purchase amount. Using the gross‑profit method, determine the amount of purchases recorded in the books (rounded to the nearest naira).
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About This Question
This is Neco Model Questions Vol1 2021 Financial Accounting Question 48. It is one of the objective questions from the 2021 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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