Gce Model Questions Vol1 2024 Financial Accounting Question 40
Practice objective / multiple choice question 40 from the 2024 Gce Model Questions Vol1 Financial Accounting examination.
A sole trader's trial balance (before adjustments) shows the following figures (all amounts in £):\n- Sales: 500,000\n- Purchases: 300,000\n- Opening stock: 40,000\n- Closing stock: 50,000\n- Salaries expense: 60,000\n- Rent expense: 20,000\n- Depreciation expense (building) recorded: 15,000\n- Advertising expense: 10,000\n- Interest on loan: 5,000\n- Drawings: 30,000\nAdditional information:\n- The building was purchased during the year for £120,000 and should be depreciated at 10 % per annum (full‑year charge).\n- An electricity bill of £4,000 is outstanding and not recorded.\n- A provision for doubtful debts of £3,000 should be created.\nPrepare the profit and loss account and calculate the net profit for the year.
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This is Gce Model Questions Vol1 2024 Financial Accounting Question 40. It is one of the objective questions from the 2024 Gce Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
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