Waec Model Questions Vol1 2023 Financial Accounting Question 11
Practice objective / multiple choice question 11 from the 2023 Waec Model Questions Vol1 Financial Accounting examination.
A company had opening balances: Cash ₦50,000; Trade receivables ₦30,000; Inventory ₦70,000; Equipment (cost) ₦100,000; Accumulated depreciation ₦0; Share capital and retained earnings ₦0. During the year the following transactions occurred: (i) Issued 5,000 shares at ₦200 each, the premium being ₦20 per share. (ii) Purchased equipment for ₦150,000 cash. (iii) Sold inventory costing ₦80,000 on credit for ₦120,000. (iv) Depreciated equipment at 10% per annum on its total cost. (v) Provided for doubtful debts at 5% of trade receivables. Assuming no other transactions, what is the closing retained earnings at year‑end?
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About This Question
This is Waec Model Questions Vol1 2023 Financial Accounting Question 11. It is one of the objective questions from the 2023 Waec Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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