WAEC Accounting 2023 Paper

Concept:Gross profit is the excess of net sales over the cost of goods sold.To calculate the cost of goods sold completely, we need opening stock, purchases, returns outwards, carriage inwards and closing stock.Explanation:Returns inwards are sales returns, so they reduce sales, not purchases.The given figures are:Sales $= \mathrm{D}\,195{,}000$Purchases $= \mathrm{D}\,160{,}000$Returns outwards $= \mathrm{D}\,880$Returns inwards $= \mathrm{D}\,620$Carriage inwards $= \mathrm{D}\,740$Net purchases $= \mathrm{D}\,160{,}000 - \mathrm{D}\,880 + \mathrm{D}\,740 = \mathrm{D}\,159{,}860$Net sales $= \mathrm{D}\,195{,}000 - \mathrm{D}\,620 = \mathrm{D}\,194{,}380$No opening stock or closing stock is provided in the available information, so the cost of goods sold cannot be calculated completely.Using only the amounts listed: gross profit $= \mathrm{D}\,194{,}380 - \mathrm{D}\,159{,}860 = \mathrm{D}\,34{,}520$This figure does not match any of the options.Answer:None of the listed options is correct from the stated data.