WAEC Accounting 2024 Paper

Concept:Mark-up is profit expressed as a fraction of cost, while margin is profit expressed as a fraction of sales.Explanation:Mark-up is $\frac{1}{3}$, so profit is 1 part and cost is 3 parts.Therefore, sales $= 3 + 1 = 4$ parts, and profit margin is $\frac{1}{4}$.Profit $= \frac{1}{4} \times \text{Sales} = \frac{1}{4} \times 180000 = 45000$.So, profit $=$ Le 45,000.Cost of sales $=$ Sales $-$ Profit $= 180000 - 45000 = 135000$.Thus, cost of sales $=$ Le 135,000.Using the stock equation:Cost of sales $=$ Opening stock $+$ Purchases $-$ Closing stock.$135000 = 6000 + \text{Purchases} - 4200$.Purchases $= 135000 + 4200 - 6000 = 133200$.Therefore, purchases $=$ Le 133,200.Answer:Purchases $=$ Le 133,200, so the correct option is C.