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
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:
-
Calculate Cost of Goods Sold (COGS):
- Opening Stock: ₦2600
- Purchases: ₦4000
- Carriage Inwards: ₦500
- COGS = Opening Stock + Purchases + Carriage Inwards = ₦2600 + ₦4000 + ₦500 = ₦7100
-
Calculate Gross Profit:
- Sales: ₦9000
- Gross Profit = Sales - COGS = ₦9000 - ₦7100 = ₦1900
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