This accounting problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.
ScanSolve AI Answer
Step 1: Calculate Net Sales. Net Sales are calculated by subtracting Return Inward (Sales Returns) from Sales. Net Sales = Sales - Return Inward Net Sales = ₦60,000 - ₦10,000 Net Sales = ₦50,000 Step 2: Calculate Net Purchases. Net Purchases are calculated by subtracting Return Outward (Purchases Returns) from Purchases. Net Purchases = Purchases - Return Outward Net Purchases = ₦250,000 - ₦5,000 Net Purchases = ₦245,000 To prepare a complete Trading Account and determine the Gross Profit, the closing stock as of 31st December 2025 would also be required. The provided "Stock (C/L, 1/1/2025)" represents the opening stock. Net Sales: ₦50,000 Net Purchases: ₦245,000 Send me the next one 📸