Use the information below to answer questions 23 and 24. ............................31/12/07.......31/12/08 Stocks........................N4 200.........N3 900 Rates in advance..............N1 000.........N1 500 Accrued wages.................N1 150.........N1 350 Cost of goods sold was valued at N6 000. Cash paid for rates and wages during the year was N1 300 and N2 200 respectively. What is the value of purchases for the year 2008?
A. N6 000 B. N9 900 C. N14 100 D. N5 700
Correct Answer: D
Explanation
opening stock = 4200 closing stock = 3900 cost of goods sold = 6000 purchase = opening stock -Â closing stock - cost of goods sold 4200 - 3900 = 300 Â 6000 - 300 = 5700
