WAEC - Accounts Principles Of Accounts (2024 - No. 7)
Use the following information to answer this question
Le
Opening stock 6,000
Sales 180,000
Closing stock 4,200
Mark-up is 33\(\frac{1}{3}\)%
The value of purchases is
Explanation
Mark-up = \(\frac{\text{profit}}{\text{cost of sales}}\) = \(\frac{1}{3}\)
Margin = \(\frac{\text{profit}}{\text{cost} + {profit}}\) = \(\frac{1}{3 + 1}\) = \(\frac{1}{4}\)
\(\frac{1}{4}\) = \(\frac{\text{profit}}{\text{cost} + {profit}}\) = \(\frac{\text{profit}}{\text{sales}}\)
\(\frac{1}{4}\) = \(\frac{\text{profit}}{180000}\)
Profit = \(\frac{le 180,000}{4}\) = Le 45,000
Cost of sales + Profit = Sales
Cost of sales = Sales - Profit
= Le 180,000 - Le 45,000
Cost of sales = Le 135,000
Cost of sales = opening stock + purchase - closing stock
Le 135,000 = Le 6,000 + purchase - Le 4,200
Purchase = Le 135,000 + 4,200 - Le 6,000
= Le 133,200
Comments (0)
