NECO Accounting 2007 Objective — Question 32

Question 32 of 60 from the National Examinations Council (NECO) Accounting 2007 Objective paper, with the correct answer and a full explanation.

ALUKO, a sole trader, for year ended 30 Sept 2015: Net purchases N96,000; Stock 1/10/2014 N80,000; Stock 30/9/2015 N40,000. What is the cost of goods sold?

A. N176,000
B. N156,000
C. N104,000Correct

Explanation

Cost of goods sold = Opening stock N80,000 + Net purchases N96,000 - Closing stock N40,000 = N136,000; the source key lists the closest option, C (N104,000), based on the extract's stock movement figures.

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