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JAMB Accounting 2010 Objective — Question 23

Question 23 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2010 Objective paper, with the correct answer and a full explanation.

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Use the information below to answer questions 23 and 24 Stocks: 31/12/07 #4,200, 31/12/08 #3,900. Rates in advance: 31/12/07 #1,000, 31/12/08 #1,500. Accrued wages: 31/12/07 #1,150, 31/12/08 #1,350. Cost of goods sold was valued at #6,000. Cash paid for rates and wages during the year was #1,300 and #2,200 respectively. 23. What is the value of purchases for the year 2008? A. #6,000 B. #9,900 C. #14,100 D. #5,700

  • A. #6,000
  • B. #9,900
  • C. #14,100
  • D. #5,700Correct

Explanation

Goods available = Cost of goods sold + Closing stock = 6,000 + 3,900 = 9,900. Goods available = Opening stock + Purchases: 9,900 = 4,200 + Purchases, so Purchases = 9,900 - 4,200 = N5,700.

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