Waec Model Questions Vol1 2022 Financial Accounting Question 15

A sole trader's trial balance at 31 December shows the following items (all amounts in ₦):\n- Sales: 1,200,000 (credit)\n- Purchases: 720,000 (debit)\n- Opening Stock: 150,000 (debit)\n- Closing Stock: 180,000 (debit)\n- Salaries expense: 200,000 (debit)\n- Rent expense: 120,000 (debit)\n- Depreciation expense (building): 60,000 (debit)\n- Drawings: 90,000 (debit)\n- Capital (opening): 300,000 (credit)\nAdditional information:\n1. Bad debts written off during the year amount to ₦15,000 (not yet recorded).\n2. The building's original cost is ₦600,000 and accumulated depreciation before this year is ₦240,000.\n3. The trader received interest income of ₦12,000 (not recorded).\n4. The trader paid a dividend of ₦30,000 (not recorded).\nPrepare the statement of profit or loss and compute the closing capital of the trader.