Maina Merchants Trading and Profit and Loss Account (Extract) ? ? ? Stock (1/1/2010) 80,000 Sales 300,000 Purchases 90,000 Less Cost of goods available for ...

Answer Details

To determine the closing stock, we need to use the formula: Closing Stock = Cost of Goods Available for Sale - Cost of Goods Sold. From the given information, we know that the cost of goods available for sale is ₦170,000 and the gross profit is ₦150,000. Therefore, the cost of goods sold is ₦120,000 (₦270,000 - ₦150,000). Using the formula, we can calculate the closing stock as follows: Closing Stock = ₦170,000 - ₦120,000 = ₦50,000. Therefore, the closing stock for Maina Merchants Trading is ₦50,000.