Neco Model Questions Vol1 2022 Financial Accounting Question 23
Practice objective / multiple choice question 23 from the 2022 Neco Model Questions Vol1 Financial Accounting examination.
A merchandising firm has the following incomplete records for the year ended 31 December:\n- Opening stock: \(45,000\)\n- Closing stock: \(55,000\)\n- Sales (cash and credit) recorded in the cash book: \(210,000\)\n- Cash receipts from customers: \(190,000\)\n- Cash payments to suppliers: \(120,000\)\n- Cash expenses (rent, salaries, etc.): \(30,000\)\nThe firm applies a gross‑profit margin of 25 % on cost. No purchases are recorded in the books. Determine the amount of purchases for the year.
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About This Question
This is Neco Model Questions Vol1 2022 Financial Accounting Question 23. It is one of the objective questions from the 2022 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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