JAMB Accounting 2009 Objective — Question 16

Question 16 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2009 Objective paper, with the correct answer and a full explanation.

16. Using the same extract, if the opening stock is 5% of sales, calculate the purchases.

A. #95,600
B. #95,000
C. #90,600Correct
D. #85,000

Explanation

Opening stock = 5% x #100,000 = #5,000. Opening stock + Purchases - Closing stock = COGS: 5,000 + Purchases - 5,600 = 90,000, so Purchases = #90,600.

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