Use this information to answer this question. Below is the trading, profit and loss Account particulars of Amadi peterside and Brothers for the year ended 31st December 1986.
₦
₦
Opening stockPurchase
10007000
Sales
8000
Closing Stock
3000
Trading Expenses
ElectricitySalariesRentDepreciations
₦135875180210
From the figures given, calculate
Gross profit
A. 300 B. 3000 C. 6000 D. 11000
Correct Answer: B
Explanation
Gross profit = Sales - Cost of goods sold Cost of goods sold = Opening + Purchases - Closing stock = 1000 + 7000 - 3000 ⇒ 6000 Therefore, Gp = 8000 - 6000 = 3000
