Use the information below to answer questions 13 and 14
| # | |
| Sales | 50,000.00 |
| Debtors | 10,000.00 |
| Cash in hand | 5,000.00 |
| Opening stock | 30,000.00 |
| Creditors | 8,000.00 |
| Purchases | 16,000.00 |
| Overdraft | 12,000.00 |
| Closing stock | 10,000.00 |
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
Correct Answer: Option D
Explanation:
Gross profit = Sales - Cost of goods sold
Note that cost of goods sold = Opening stock + purchase - closing stock
= 30,000 + 16,000 - 10,000
= 36,000
GP = 50,000 - 36,000
= 14,000
Gross profit = Sales - Cost of goods sold
Note that cost of goods sold = Opening stock + purchase - closing stock
= 30,000 + 16,000 - 10,000
= 36,000
GP = 50,000 - 36,000
= 14,000