| ₦ | ₦ | ||
| Stock 1/1 | 20,000 | Net Sales | 370,000 |
| Add purchases | 250,000 | ||
| Cost of goods available for sale | 270,000 | ||
| Less stock 31/12 | 40,000 | ||
| Cost of goods sold | 230,000 | ||
| Rent expenses | 35,000 |
Find the gross profit
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Correct Answer: Option D
Explanation:
Gross profit is calculated by subtracting the cost of goods sold from net sales. From the given data, Net sales is ₦370,000 and Cost of goods sold is ₦230,000. Therefore, Gross profit = Net sales - Cost of goods sold = ₦370,000 - ₦230,000 = ₦140,000.
Gross profit is calculated by subtracting the cost of goods sold from net sales. From the given data, Net sales is ₦370,000 and Cost of goods sold is ₦230,000. Therefore, Gross profit = Net sales - Cost of goods sold = ₦370,000 - ₦230,000 = ₦140,000.