JAMB - Accounts Principles Of Accounts (2015 - No. 63)
Sai Baba made sales of N10,000 having computed his gross profit % to sales to be 20. His opening stock was N250 and ending stock is N200. Calculate his purchases.
N7950
N8050
N7050
N8950
Explanation
The gross profit percentage of sales would be
20% x N 10,000 = N 2000
If cost of sales + gross profit = N 10,000 = N 2000
:. N 8000 + N 2000 = N 10,000
If cost of goods available for sales less closing stock
= cost of sales
:. N8200 + N200 = N8000
Hence; cost of goods available for sale = opening stock + purchases
:. N8200 = N250 + A
= N 8200 – N 250
=N 7950
20% x N 10,000 = N 2000
If cost of sales + gross profit = N 10,000 = N 2000
:. N 8000 + N 2000 = N 10,000
If cost of goods available for sales less closing stock
= cost of sales
:. N8200 + N200 = N8000
Hence; cost of goods available for sale = opening stock + purchases
:. N8200 = N250 + A
= N 8200 – N 250
=N 7950
Comments (0)
