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 stock Purchase |
1000 7000 |
Sales | 8000 |
| Closing Stock | 3000 |
Trading Expenses
|
Electricity |
₦ 135 875 180 210 |
From the figures given, calculate
Gross profit
-
A.
300 -
B.
3000 -
C.
6000 -
D.
11000
Correct Answer: Option 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