Use this information to answer this question. Below is the trading, profit and loss Account particulars of Amadi peterside and Brothers for the year ended 31st December 1986.<br/>Opening stock = 1000<br/>Purchases = 7000<br/>Sales = 8000<br/>Closing stock = 3000<br/>Trading Expenses:<br/>Electricity = 135<br/>Salaries = 875<br/>Rent = 180<br/>Depreciation = 210<br/>From the figures given, calculate Gross profit
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
Correct Answer: Option B
Explanation:
Cost of goods sold is calculated as:<br/><br/>Opening stock + Purchases - Closing stock<br/>= 1000 + 7000 - 3000<br/>= 6000.<br/><br/>Gross profit = Sales - Cost of goods sold<br/>= 8000 - 6000<br/>= 3000.<br/><br/>Therefore, the gross profit is N3,000.
Cost of goods sold is calculated as:<br/><br/>Opening stock + Purchases - Closing stock<br/>= 1000 + 7000 - 3000<br/>= 6000.<br/><br/>Gross profit = Sales - Cost of goods sold<br/>= 8000 - 6000<br/>= 3000.<br/><br/>Therefore, the gross profit is N3,000.