The following represent extracts from the trading account of a retail outlet for a given month: Opening stock ₦2,400 Closing stock ₦6,400 Other expenses ₦2,...

Answer Details

To calculate the purchase figure for the month, we need to use the formula: Purchase = Opening stock + Purchases - Closing stock We have the opening stock as ₦2,400, and the closing stock as ₦6,400. We also know that the profit for the month is ₦900. Using the formula above, we can rearrange it to solve for purchases: Purchases = Closing stock + Cost of sales - Opening stock We can calculate the cost of sales as the sales figure minus the other expenses and the profit: Cost of sales = Sales - (Other expenses + Profit) = ₦11,000 - (₦2,000 + ₦900) = ₦8,100 Substituting the values we have into the formula, we get: Purchases = ₦6,400 + ₦8,100 - ₦2,400 = ₦12,100 Therefore, the purchase figure for the month is ₦12,100. Answer is correct.