Gce Model Questions Vol1 2021 Financial Accounting Question 23

The trial balance of ABC Ltd for the year ended 31 December 2021 (all figures in \(\text{₦}\)) is shown below.\n\nSales Revenue \(\text{₦}1,200,000\)\nOpening Stock \(\text{₦}80,000\)\nPurchases \(\text{₦}500,000\)\nPurchase Returns \(\text{₦}20,000\)\nCarriage Inwards \(\text{₦}10,000\)\nClosing Stock (physical count) \(\text{₦}70,000\)\nSalaries Expense \(\text{₦}150,000\)\nDepreciation Expense - Buildings \(\text{₦}30,000\)\nBad Debts Expense \(\text{₦}12,000\)\nBad Debts Recovered \(\text{₦}3,000\)\nAdministration Overheads \(\text{₦}40,000\)\nInterest Received \(\text{₦}5,000\)\nRent Received \(\text{₦}8,000\)\n\nUsing this information, prepare the Income Statement and calculate (a) Gross Profit and (b) Net Profit for the year.