Use the following information to answer the given question:
(begin{array}{c|c} & N \ hline text{Stock at 1st Jan. 1901} & 6,500 \ text{Stock at 31st Dec. 1901} & 5,500 \ text{Creditors at 1st Jan. 1901} & 4,000 \ text{Creditors at 31st December 1901} & 5,000 \ text{cash paid for goods during the year} & 20,000 \ text{Gross profit} & text{25% on cost} \ text{Administrative and selling expenses} & 2,750
end{array})
What is the amount charged in the profit and loss account?
(begin{array}{c|c} & N \ hline text{Stock at 1st Jan. 1901} & 6,500 \ text{Stock at 31st Dec. 1901} & 5,500 \ text{Creditors at 1st Jan. 1901} & 4,000 \ text{Creditors at 31st December 1901} & 5,000 \ text{cash paid for goods during the year} & 20,000 \ text{Gross profit} & text{25% on cost} \ text{Administrative and selling expenses} & 2,750
end{array})
What is the amount charged in the profit and loss account?
-
A.
6,500 -
B.
N5,500 -
C.
N5,000 -
D.
N4,000 -
E.
N2,750