JAMB Accounting 2014 Objective — Question 34

Question 34 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2014 Objective paper, with the correct answer and a full explanation.

Given: Sales 180,000; Stock 1/1 25,000; Purchases 110,000; Sales returns 1,000; Purchases returns 1,500; Gross profit 58,000. Determine the value of stock as at 31st December.

A. N8,000
B. N9,500
C. N12,500Correct
D. N15,500

Explanation

Using the trading account: Net sales 179,000; Cost of goods sold = 179,000−58,000=121,000; Goods available = 108,500(purchases less returns)+25,000(opening stock)=133,500; Closing stock=133,500−121,000=N12,500.

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