Neco 2017 Financial Accounting Question 44

Practice objective / multiple choice question 44 from the 2017 Neco Financial Accounting examination.

Neco 2017 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 44 NECO • 2017 • FINANCIAL_ACCOUNTING • objective

The trial balance of a firm before adjustments shows the following items (amounts in ₦):\n\nSales (Cr) 200,000\nPurchases (Dr) 120,000\nSalaries (Dr) 30,000\nRent (Dr) 20,000\nClosing stock (Dr) 25,000\nOpening stock (Dr) 18,000\nDrawings (Dr) 10,000\nAccumulated depreciation (Cr) 15,000\nCapital (Cr) 100,000\n\nA depreciation expense has not been recorded.\n\n(a) What amount of depreciation expense must be recorded to balance the trial balance?\n(b) After recording this expense, compute the net profit (or loss) for the period.

Answer Options

A. Depreciation expense = ₦100,000; Net loss = ₦63,000
B. Depreciation expense = ₦92,000; Net profit = ₦5,000
C. Depreciation expense = ₦85,000; Net loss = ₦48,000
Correct Answer D. Depreciation expense = ₦92,000; Net loss = ₦55,000
Correct Answer
D
Correct Option:
Depreciation expense = ₦92,000; Net loss = ₦55,000

About This Question

This is Neco 2017 Financial Accounting Question 44. It is one of the objective questions from the 2017 Neco Financial Accounting examination.

Difficulty level: Medium .

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