Waec Model Questions Vol1 2020 Financial Accounting Question 1

Alpha Ltd. prepared its statement of financial position for the year ended 31 December 2020. The following information is given: - Share capital (ordinary) : ₦500,000 - Retained earnings (opening) : ₦120,000 - Equipment cost : ₦300,000; accumulated depreciation (opening) : ₦90,000; depreciation for the year 12% of cost. - Inventory (opening) : ₦80,000; inventory (closing) : ₦70,000. - Trade receivables (opening) : ₦60,000; trade receivables (closing) : ₦55,000. - Trade payables (opening) : ₦50,000; trade payables (closing) : ₦45,000. - Impairment loss on receivables : ₦5,000 (recognised during the year). - Revaluation surplus on land : ₦40,000 (recognised during the year). - Dividend paid during the year : ₦30,000. Compute the total shareholders' equity (share capital + retained earnings + revaluation surplus) at 31 December 2020.