Use the information below to answer question
……………………….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.
A. N6 000
B. N9 900
C. N14 100
D. N5 700
Correct Answer:
Option D – N5 700
Explanation
opening stock = 4200
closing stock = 3900
cost of goods sold = 6000
purchase = opening stock – closing stock – cost of goods sold
4200 – 3900 = 300
6000 – 300 = 5700
