Waec Model Questions Vol1 2020 Financial Accounting Question 6
Practice objective / multiple choice question 6 from the 2020 Waec Model Questions Vol1 Financial Accounting examination.
The trial balance of XYZ Ltd for the year ended 31 December is as follows (figures in Naira): Sales 500,000; Opening Stock 80,000; Purchases 300,000; Closing Stock 70,000; Trade Receivables 60,000; Trade Payables 45,000; Cash 20,000; Equipment cost 120,000; Accumulated depreciation (opening) 30,000; Provision for doubtful debts (opening) 3,000; Salaries expense 50,000; Rent expense 40,000; Interest expense 5,000; Capital (opening) 200,000; Drawings 30,000. During the year depreciation on equipment is charged at 10% of its cost and the provision for doubtful debts is required to be 5% of year‑end trade receivables. No other adjustments are necessary. What amount of profit is transferred to capital at year‑end?
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About This Question
This is Waec Model Questions Vol1 2020 Financial Accounting Question 6. It is one of the objective questions from the 2020 Waec Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
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