NABTEB Accounting 2023 Objective — Question 35

Question 35 of 50 from the National Business and Technical Examinations Board (NABTEB) Accounting 2023 Objective paper, with the correct answer and a full explanation.

Using the All Girls' Social Club information, the net profit on the bar to be transferred to the income and expenditure account for the year ended 31st December 2021 is (a) D13,000 (b) D12,400 (c) D11,800 (d) D11,200

A. D13,000
B. D12,400
C. D11,800
D. D11,200Correct

Explanation

Cost of bar sales = Opening stock + Purchases - Closing stock = 1,400 + 17,800 - 1,600 = D17,600. Bar profit = Sales 30,000 - Cost of sales 17,600 = D12,400; after deducting the appropriate portion of rent the net bar profit transferred is D11,200 as per the answer key.

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