Use the following information to answer questions below Trading Account of Umeh Enterprises for the year ended 31st December 2019
GH⊄ GH⊄
Opening stock 10000 Sales 200000
Purchases 120000 Less: (4000)
130000 196000
Closing stock (22800)
Cost of goods sold -----
Gross profit ------
196000 196000
The gross profit is
  • A GH⊄ 88,800
  • B GH⊄ 43,200
  • C GH⊄ 152,800
  • D GH⊄ 107,200
waec 2022accounting

The correct answer is A. GH⊄ 88,800

Gross profit = (Sales + Return inward) - Cost of goods sold

= 196,000 - 107,200

= 88,800

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