Waec Model Questions Vol1 2017 Financial Accounting Question 24

The following partial trial balance (amounts in Naira) is extracted for ABC Ltd. before year‑end adjustments: - Sales Revenue: Cr 1,200,000 - Cost of Goods Sold: Dr 720,000 - Opening Inventory: Dr 150,000 - Closing Inventory: Cr 180,000 (recorded amount) - Administrative Expenses: Dr 200,000 - Depreciation Expense - Machinery: Dr 0 (not recorded) - Machinery (cost): Dr 500,000; Accumulated Depreciation: Cr 200,000 (depreciation for the year should be 80,000) - Goodwill: Dr 120,000 (amortised over 10 years, straight‑line) - Interest Expense: Dr 30,000 - Tax Expense: Dr 50,000 It is later found that the closing inventory was overstated by ₦10,000 and that depreciation and goodwill amortisation have not been recorded. Determine the corrected net profit for the year.