Waec Model Questions Vol1 2023 Financial Accounting Question 37

An incomplete trial balance of a trading firm is shown (amounts in Naira). The only missing figure is the Opening Stock. The trial balance balances (total debits = total credits).\n\n**Debits**\n- Purchases ........................................ 850,000\n- Carriage Inwards .............................. 25,000\n- Salaries ........................................ 120,000\n- Rent ............................................ 80,000\n- Discount Allowed .............................. 10,000\n- Closing Stock .................................. 150,000\n- Opening Stock .................................. ________\n- Gross Profit .................................... ________\n\n**Credits**\n- Sales ........................................... 1,400,000\n- Sales Returns ................................... 40,000\n- Discount Received .............................. 12,000\n- Capital ......................................... 418,000\n\nAdditional information: Gross profit is 20 % of net sales (Sales - Sales Returns). Determine the amount of Opening Stock.