Categories: Accounting JAMB

Determine the company’s gross profit for the year

Use the information below to answer the question.
Phebe Enterprises has two departments S and T, with the following information

S

Opening stock ————5,000

Purchases —————–26,000

Closing stock ————- 7,000

Sales ———————— 45,000

T

1,500

3,000

2,500

4,000

The following expenses are to be shared in the ratio of 4:1
Rent ₦ 8,300
General expenses ₦3,200

A. ₦23,000
B. ₦11,500
C. ₦12,500
D. ₦20,000

Correct Answer:

Option A – ₦23,000

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