Neco Model Questions Vol1 2023 Financial Accounting Question 4

Practice objective / multiple choice question 4 from the 2023 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2023 Financial Accounting Objective / Multiple Choice Hard Difficulty
Question 4 NECO_MODEL_QUESTIONS_VOL1 • 2023 • FINANCIAL_ACCOUNTING • objective

A sole trader's incomplete records for the year provide the following information: - Opening stock: N50,000 - Purchases (all on credit): N200,000 - Closing stock: N40,000 - Gross profit margin: 30\% of sales - Credit sales: N180,000 - Operating expenses (excluding interest): N20,000 - Interest expense: N5,000 - Net profit reported: N45,000 Cash purchases amount to N30,000. No other information is given. Determine (a) the cash sales for the period and (b) the amount of drawings made by the trader during the year.

Answer Options

A. Cash sales = 125000; Drawings = 15000
Correct Answer B. Cash sales = 120000; Drawings = 20000
C. Cash sales = 130000; Drawings = 10000
D. Cash sales = 115000; Drawings = 25000
Correct Answer
B
Correct Option:
Cash sales = 120000; Drawings = 20000

About This Question

This is Neco Model Questions Vol1 2023 Financial Accounting Question 4. It is one of the objective questions from the 2023 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Hard .

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