Use the following information to answer this question The following are the final accounts of a trading organisation Wazobi ventures, for the year ended 30t...

Assessment: JAMB UTME - Principles of Accounts - 2019 Subject: Financial Accounting

Question 1 Report

Use the following information to answer this question

The following are the final accounts of a trading organisation Wazobi ventures, for the year ended 30th June, 19x8

  ₦ ₦
Sales

Less: cost of goods sold

   233,000

170,000
    63,000
less: Overhead Expenses

Admin expenses

Selling expenses

Other overhead expenses

16,800

15,000

6,200

 
Net profit   25,000

What is the Gross Profit on percentage of sale?

Answer Details
To calculate the Gross Profit on percentage of sale, we need to use the following formula: Gross Profit Percentage = (Gross Profit / Sales) x 100 First, we need to calculate the Gross Profit, which is the difference between the Sales and Cost of Goods Sold: Gross Profit = Sales - Cost of Goods Sold Gross Profit = 233,000 - 170,000 Gross Profit = 63,000 Next, we can calculate the Gross Profit Percentage using the formula above: Gross Profit Percentage = (Gross Profit / Sales) x 100 Gross Profit Percentage = (63,000 / 233,000) x 100 Gross Profit Percentage = 0.2701 x 100 Gross Profit Percentage = 27.01% Therefore, the Gross Profit on percentage of sale is 27.01%, which means that for every ₦1 of sales, Wazobi Ventures earns a Gross Profit of ₦0.27. The closest option to this answer is 27.0%.
Read lesson note on Nature And Significance Of Accounting (JAMB)
View Answer

Related Questions

1

The advantage of double entry is that
2

Goods were purchased for resale on credit costing ₦150,000 on 30th September 20X8 from Tosanwumi International. The entry to record these transaction is debit
3

Transactions are recorded or posted to the ledger in line with
4

Show how the following transaction will be recorded applying the double entry principle: Rent ₦50,000 was paid by Mr. Roi to his landlord on 1st July, 20 × 7...
5

If only wages is shown on the trial balance, it should be charged to the
6

Accounts can be classified into
7

Use the following information to answer this question The following are the final accounts of a trading organisation Wazobi ventures, for the year ended 30th...
8

A statement in a double entry system in which are recorded all the transactions of one specific class, which takes place during the period is called

Download The App On Google Playstore

Everything you need to excel in your exams

Green Bridge CBT Mobile App
Personalized AI Learning Chat Assistant
200,000+ Exam Questions Across IGCSE, JAMB, WAEC & NECO
Over 3,900 Lesson Notes
Offline Support - Learn Anytime, Anywhere
Green Bridge Timetable
Literature Summaries & Potential Questions
Track Your Performance & Progress
In-depth Explanations for Comprehensive Learning