JAMB Accounts Principles of Accounts 2024 Paper

Concept:Net profit percentage shows the proportion of each naira of sales that remains as net profit after all expenses.Explanation:First, calculate the cost of goods sold:$\text{COGS} = \text{Opening Stock} + \text{Purchases} - \text{Closing Stock}$$\text{COGS} = 20{,}000 + 140{,}000 - 10{,}000$$\text{COGS} = 150{,}000$Next, calculate the gross profit:$\text{Gross Profit} = \text{Sales} - \text{COGS}$$\text{Gross Profit} = 200{,}000 - 150{,}000$$\text{Gross Profit} = 50{,}000$Then deduct general expenses to obtain the net profit:$\text{Net Profit} = \text{Gross Profit} - \text{General Expenses}$$\text{Net Profit} = 50{,}000 - 10{,}000$$\text{Net Profit} = 40{,}000$Finally, express net profit as a percentage of sales:$\text{Net Profit Percentage} = \frac{\text{Net Profit}}{\text{Sales}} \times 100$$\text{Net Profit Percentage} = \frac{40{,}000}{200{,}000} \times 100$$\text{Net Profit Percentage} = 20\%$Answer:The net profit percentage is $20\%$. Therefore, the correct option is D.