JAMB Accounts Principles of Accounts 2023 Paper

Concept:Net profit is derived by subtracting all expenses, including carriage outwards, from gross profit.Explanation:Calculate the cost of goods sold:$$\text{Cost of goods sold} = 2600 + 4000 + 500 = 7100$$Calculate the gross profit:$$\text{Gross profit} = 9000 - 7100 = 1900$$Subtract carriage outwards, which is an expense:$$\text{Net profit} = 1900 - 500 = 1400$$Answer:$1400$ (Option D)