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JAMB Accounting 2007 Objective — Question 6

Question 6 of 46 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2007 Objective paper, with the correct answer and a full explanation.

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Use the information below to answer questions 6 and 7. Stock (1/1/02) at selling price 2,000; Goods sent to branch (selling price) ?; Sales by branch (selling price) 4,500; Stock (31/12/02) ?. Opening stock is 1/4 of goods sent to branch. The value of goods sent to branch is

  • A. #4,000
  • B. #6,000
  • C. #8,000Correct
  • D. #2,000

Explanation

Since opening stock (2,000) is 1/4 of goods sent to branch, goods sent to branch = 4 x #2,000 = #8,000.

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