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
-
GH⊄ 88,800
- GH⊄ 43,200
- GH⊄ 152,800
- GH⊄ 107,200
The correct answer is: A
Explanation
Gross profit = (Sales + Return inward) - Cost of goods sold
= 196,000 - 107,200
= 88,800