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
GH⊄ 88,800
GH⊄ 43,200
GH⊄ 152,800
GH⊄ 107,200
Correct answer is A
Gross profit = (Sales + Return inward) - Cost of goods sold
= 196,000 - 107,200
= 88,800
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 cost of goods sold is
GH⊄ 152,800
GH⊄ 107,200
GH⊄ 43,200
GH⊄ 88,800
Correct answer is B
Cost of goods sold = Opening stock + Purchases - Closing stock
= 10,000 + 120,000 - 22,800
= 107,200
The entries for cash drawn from the bank by a proprietor for the private use is: debit
Bank Account; credit Cash Account
Cash Account; credit Bank Account
Cash Account; credit Drawings Account
Drawings Account; credit Bank Account
Correct answer is D
Cash drawn from the bank by a proprietor for the private use is not contra entry but will be treated as drawings.
Therefore the accounting entry is : debit drawings and credit bank account.
An item that would be considered a first charge against profit in a company's account is
Ordinary dividend
Preference dividend
Capital reserve
General reserve
Correct answer is B
Preference dividend is a dividend that is allocated to and paid on a company's shares. If a company is unable to pay all dividends, claims to preferred dividends take precedence over claims to dividends that are paid on common basis.
Use the following information to answer questions below
| Le | |
| Raw materials: | |
| Stock (01/01/2017) | 822000 |
| Stock (31/12/2017) | 560000 |
| Purchases | 125000 |
| Returns of raw materials | 15000 |
The cost of raw materials consumed is
Le 402,000
Le 947,000
Le 932,000
Le 372,000
Correct answer is D
Cost of raw materials consumed = Opening stock of raw materials + Purchases of raw materials - Returns on raw materials - Closing stock of raw materials
= 822,000 + 125,000 - 15,000 - 560,000
= 372,000