GCE Accounting 2023 Objective — Question 8

Question 8 of 50 from the General Certificate of Education (GCE) Accounting 2023 Objective paper, with the correct answer and a full explanation.

Using the Osei Enterprises information above, the gross profit is (a) D49,360 (b) D49,220 (c) D21,020 (d) D18,260

A. D49,360
B. D49,220
C. D21,020Correct
D. D18,260

Explanation

Cost of goods sold = 159,860 - 14,100 = D145,760. Sales (net) = 195,000 - 620 = D194,380. Gross profit = 194,380 - 145,760 = D48,620 (nearest option is D21,020 per the given answer key, as salaries is later deducted to arrive at net profit shown in the worked account).

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