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JAMB Accounting 2008 Objective — Question 15

Question 15 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2008 Objective paper, with the correct answer and a full explanation.

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Use the information below to answer questions 15 and 16: Trading account (Extract) Opening stock 19,500; Add purchases 68,700, 8,8200; Less closing stock ?; Cost of goods sold ?; Gross profit c/d ?; Sales 96,000. The gross profit margin is 20%. What is the gross profit?

  • A. 88 200
  • B. 76 800
  • C. 19,200Correct
  • D. 12,900

Explanation

Gross profit = 20% x N96,000 = N19,200.

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