JAMB Accounts Principles of Accounts 2013 Paper

Concept:Gross profit is sales minus cost of goods sold.Cost of goods sold includes opening stock, purchases, carriage inwards, and closing stock.Explanation:Calculate cost of goods available for sale:$$28,000 + 128,000 = 156,000$$Add carriage inwards:$$156,000 + 4,000 = 160,000$$Subtract closing stock to get cost of goods sold:$$160,000 - 10,000 = 150,000$$Now calculate gross profit:$$232,000 - 150,000 = 82,000$$Discount received and carriage outwards are not part of gross profit calculation.Answer:Gross profit = #82,000Correct option: C. #82,000