Neco 2018 Financial Accounting Question 29

For the year ended 31 December 2022 a sole trader provided the following incomplete records:\n\n- Opening stock: \\(80,000\\) naira\n- Closing stock: \\(70,000\\) naira\n- Cash sales: \\(150,000\\) naira\n- Credit sales: unknown\n- Cash purchases: \\(90,000\\) naira\n- Credit purchases: unknown\n- Cash payments to creditors: \\(60,000\\) naira\n- Cash paid for expenses (rent, salaries, etc.): \\(50,000\\) naira\n- Drawings by the owner: \\(30,000\\) naira\n\nIt is known that credit purchases exceed cash purchases by \\(20,000\\) naira and that credit sales exceed cash sales by \\(40,000\\) naira. Determine the amounts of credit purchases and credit sales, and compute the correct net profit for the year.