WAEC Accounting 2022 Paper

Concept:Gross profit measures the profit earned from buying and selling goods before deducting expenses.It is calculated as Net sales minus Cost of goods sold.Explanation:First, determine Net sales by subtracting Return inward from total Sales.Then, subtract Cost of goods sold from Net sales.Using the figures from the Trading Account: Net sales $= 196,000$Cost of goods sold $= 107,200$Therefore, Gross profit $= 196,000 - 107,200$Gross profit $= 88,800$Answer:Gross profit $= \text{GH¢}\,88{,}800$.Correct option: A. GH⊄ 88,800.