JAMB Accounts Principles of Accounts 2017 Paper

Concept:Net profit is gross profit minus expenses such as carriage outwards.Explanation:Cost of sales = Stock + Purchases + Carriage inwards= $2,600 + 4,000 + 500 = 7,100$Gross profit = Sales - Cost of sales= $9,000 - 7,100 = 1,900$Net profit = Gross profit - Carriage outwards= $1,900 - 500 = 1,400$Answer:₦1,400