Gce Model Questions Vol1 2017 Financial Accounting Question 14

The trial balance of LMN Ltd for the year ended 31 December 2017 (figures in Naira) is as follows: Sales 150,000; Purchases 80,000; Rent expense 12,000; Salaries expense 30,000; Discount received 2,000; Discount allowed 1,500; Trade receivables 20,000; Trade payables 15,000; Capital 50,000; Drawings 5,000. The total of the debit side equals the total of the credit side. However, the following errors have been discovered: (i) a purchase of equipment for \(\text{₦}10,000\) was omitted from the books; (ii) a payment of \(\text{₦}3,000\) to a creditor was recorded twice as an expense; (iii) a sales return of \(\text{₦}4,000\) was omitted from sales and not recorded as a reduction in trade receivables. Determine the corrected profit for the year.