Question on: JAMB Accounting - 2017
\begin{array}{c|c} & N \\ \hline
\text{Stock Jan 1} & 2600 \\ \hline \text{Purchases} & 4000 \\ \hline \text{Carriage inwards} & 500 \\ \hline \text{Sales} & 9000 \\ \hline \text{Carriage outwards} & 500
\end{array}
Determine the net profit
Determine the net profit
A
₦4,000
B
₦4,500
C
₦5,000
D
₦1,400
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Correct Option: D
Here's how to calculate the net profit, considering the provided information:
1. **Calculate Cost of Goods Sold (COGS):**
* Opening Stock: ₦2600
* Purchases: ₦4000
* Carriage Inwards: ₦500
* COGS = Opening Stock + Purchases + Carriage Inwards = ₦2600 + ₦4000 + ₦500 = ₦7100
2. **Calculate Gross Profit:**
* Sales: ₦9000
* Gross Profit = Sales - COGS = ₦9000 - ₦7100 = ₦1900
3.
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