Miscellaneous expense is 10% of revenue Calculate the net income.

  • A N583,000
  • B N563,000
  • C N483,000
  • D N581,000
jamb 2002accounting

The correct answer is A. N583,000

Revenue = 820,000

miscellaneous = 10% of 820,000

\(\frac{10}{100}\times {820,000}\) = 82,000

miscellaneous expense= 82,000

Expenses = office rent + nepa (light) + salary of staff + miscellaneous

20,000 + 15,000 + 120,000 + 82,000 = 237,000

net income = revenue - expenses

820,000 - 237,000 = 583000

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