Use the information below to answer questions 23 and 24. ……………………….31/12/07…….31/12/08 Stocks……………………N4 200………N3 900 Rates…

Use the information below to answer questions 23 and 24.
……………………….31/12/07…….31/12/08
Stocks……………………N4 200………N3 900
Rates in advance…………..N1 000………N1 500
Accrued wages……………..N1 150………N1 350
Cost of goods sold was valued at N6 000.
Cash paid for rates and wages during the year was N1 300 and N2 200 respectively.
What is the value of purchases for the year 2008?

  • A.
    N6 000
  • B.
    N9 900
  • C.
    N14 100
  • D.
    N5 700
Correct Answer: Option D
Explanation

opening stock = 4200
closing stock = 3900
cost of goods sold = 6000

purchase = opening stock – closing stock – cost of goods sold

4200 – 3900 = 300
 6000 – 300 = 5700

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