Trading account for the year ended 31st December 2009
₦
₦
Opening Stock 32,000
Sales 48,000
Purchases 40,000
Less Return 2,000
Carriage inwards 1,000
41,000
Less Return 2,000 39,000
Cost of goods available ??
Less closing stock 9,000
Cost of goods sold ??
A. #20,500 B. #23,000 C. #28,000 D. #27,000
Correct Answer: A
Explanation
Average stock is the calculating the addition of stock at the beginning and at the end of the financial period and dividing the value by two.  It is the average value of products kept for sale during an accounting period.  Therefore:  Average stock = opening stock + closing stock/2  = 32000 + 9000/2  = 41000/2  =₦ 20500
