Test Index

WAEC Accounting 2022 Paper

© africaexams.com

Question : 6

Total: 50

Use the following information to answer questions below

A trader bought goods worth #16,000 and sold three-quarter of it for #20,000

The gross profit is

#4,000
#8,000
#12,000
#6,000

Solution:

Concept:

Gross profit is calculated as sales minus the cost of goods sold.

Explanation:

Goods bought cost

\#16{,}000

.

Three-quarter of the goods were sold, so:

\text{Cost of goods sold} = \frac{3}{4} \times 16{,}000 = \#12{,}000

.

Sales from these goods

= \#20{,}000

.

Thus, gross profit

= \#20{,}000 - \#12{,}000 = \#8{,}000

.

Answer:

B. #8,000

© africaexams.com

Go to Question:

Prev Question

Next Question