Principles Of Accounts 2024 Jamb Examination

Total Operating Expenses = #1,500 (Salaries) + #1,100 (Office Expenses) + #1,300 (Other Expenses) Total Operating Expenses = #3,900

The calculation is as follows:
Total Sales = Cash Received from Debtors + Discount Allowed + Closing Balance of Debtors - Opening Balance of Debtors

Substituting the values:
Total Sales = ₦10,000 + ₦500 + ₦6,000 - ₦2,000
Total Sales = ₦16,500 - ₦2,000
Total Sales = ₦14,500
 

Prime Cost = Direct Materials Cost + Direct Labor Cost 
Direct Materials Cost (Cost of Raw Materials Consumed): We have already calculated this in the previous question and found it to be #435,000 
Prime Cost = #435,000 (Direct Materials) + #65,000 (Direct Labor) 
Prime Cost = #500,000 

Factory overhead consists of all indirect manufacturing expenses.

These include:
Indirect wages = ₦28,000
Depreciation on plant = ₦32,000
Factory rent = ₦3,500

Total factory overhead = 28,000 + 32,000 + 3,500 = ₦63,500.
 

Cost of Goods Produced = Prime Cost + Factory Overhead Cost + Opening Work in Progress - Closing Work in Progress 
Prime Cost: #500,000 (from previous question) Factory Overhead Cost: #63,500 (from previous question) 
Cost of Goods Produced = #500,000 + #63,500 + #32,500 - #37,500 
Cost of Goods Produced = #558,500 

 

To find the percentage of net profit to sales, we first need to determine the Gross Profit and then the Net Profit.
Gross Profit is calculated as: Sales - Cost of Goods Sold.
Cost of Goods Sold = Opening Stock + Purchases - Closing Stock.
Cost of Goods Sold = 20,000 + 140,000 - 10,000 = 150,000.
Gross Profit = 200,000 - 150,000 = 50,000.
Net Profit is Gross Profit minus General Expenses:
Net Profit = 50,000 - 10,000 = 40,000.
The percentage of net profit to sales is calculated as:
Net Profit / Sales * 100
40,000 / 200,000 * 100 = 20%.

Fixed assets are long-term tangible assets that are used in the operations of a business and are not intended for sale in the ordinary course of business. From the provided list of balances, the fixed assets are Land and Building and Furniture.
Land and Building = ₦70,000
Furniture = ₦10,000
Total Fixed Assets = Land and Building + Furniture
Total Fixed Assets = 70,000 + 10,000 = 80,000. Other items like Debtors, Bank, and Stock are classified as current assets, while Capital and Creditors represent equity and liabilities respectively.

Gross profit is the profit a company makes after deducting the costs associated with making and selling its products. It is calculated by subtracting the Cost of Goods Sold (COGS) from total Sales.
First, calculate the Cost of Goods Sold:
Cost of Goods Sold = Opening Stock (1-09-2006) + Purchases - Closing Stock (31-08-2007)
Cost of Goods Sold = 20,000 + 140,000 - 10,000 = 150,000.
Now, calculate the Gross Profit:
Gross Profit = Sales - Cost of Goods Sold
Gross Profit = 200,000 - 150,000 = 50,000.

To calculate the current ratio, we divide the Total Current Assets by the Total Current Liabilities.
Current Assets (at year end 31-08-2007) include:
Debtors (50,000) + Bank (10,000) + Closing Stock (10,000) = 70,000.
Current Liabilities include:
Creditors = 35,000.
The Current Ratio is calculated as:
Total Current Assets / Total Current Liabilities
70,000 / 35,000 = 2.
Therefore, the ratio is 2:1.

Gross profit is determined by subtracting the cost of goods sold from the total sales revenue. To find the gross profit for Onuoha's business, we must first calculate the cost of goods sold using the provided inventory and purchase figures.
Cost of Goods Sold = Opening Stock + Purchases - Closing Stock
Using the values from the balances:
Opening Stock (1-01-2005) = ₦10,000
Purchases = ₦70,000
Closing Stock (31-12-2005) = ₦15,000
Cost of Goods Sold = 10,000 + 70,000 - 15,000 = ₦65,000.
Once the cost of goods sold is established, it is subtracted from the total sales:
Sales = ₦120,000
Gross Profit = Sales - Cost of Goods Sold
Gross Profit = 120,000 - 65,000 = ₦55,000.
The result represents the profit made before administrative and operating expenses like audit fees, general expenses, or commissions are deducted.