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JAMB - Accounts Principles Of Accounts (2019 - No. 30)

Use the question to answer this question:

Opening stock ₦
Department
A
B
100
800
Purchases:
A
B
Wages of workers
Salaries
1500
2000
50
100
Sales
A
B
3000
5000

Expenses are to be shared in the ratio of sales.

Use the question to answer this question:

Opening stock ₦
Department
A
B
100
800
Purchases:
A
B
Wages of workers
Salaries
1500
2000
50
100
Sales
A
B
3000
5000

Expenses are to be shared in the ratio of sales.

Use the question to answer this question:

Opening stock ₦
Department
A
B
100
800
Purchases:
A
B
Wages of workers
Salaries
1500
2000
50
100
Sales
A
B
3000
5000

Expenses are to be shared in the ratio of sales.

The net profit for departmental A is
1880
1600
880
425

Explanation

Cost of goods sold for departmental = 1000 + 1500 = 2,500
Gross profit = Sales - Cost of goods sold
3000 - 2500
⇒ ₦500
Therefore, Net profit = Gross profit - Expenses
500 - (50 ÷ 2 + 100 ÷ 2)
500 - (25 + 50)
500 - 75
Net profit = ₦425

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