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WAEC Accounting 2018 Paper

Question : 24

Total: 50

Use the information below to answer the question that follows

Solution:

Concept:

Gross profit is the difference between sales and the cost of goods sold.

Explanation:

First, calculate the cost of goods sold:

Cost of goods sold = Opening stock + Purchases − Closing stock

= 10,000 + 100,000 − 20,000

= \text{Le }90,000

Then, compute gross profit:

Gross profit = Sales − Cost of goods sold

= 120,000 − 90,000

= \text{Le }30,000

profit.

Answer:

A. Le 30,000 profit

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