Neco 2019 Financial Accounting Question 26
Practice objective / multiple choice question 26 from the 2019 Neco Financial Accounting examination.
A merchandising firm has the following trial balance items (all amounts in ₦): Sales 1,200,000; Purchases 720,000; Opening Stock 150,000; Closing Stock 180,000; Carriage Inwards 30,000; Carriage Outwards 20,000; Salaries 80,000; Rent 45,000; Discount Received 10,000; Discount Allowed 12,000; Bad Debts Expense 15,000; Trade Receivables 200,000; Trade Payables 120,000; Cash 50,000; Capital 500,000; Drawings 70,000. A provision for doubtful debts equal to 5% of trade receivables is required. Compute the profit for the year and the amount of net profit to be transferred to capital.
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About This Question
This is Neco 2019 Financial Accounting Question 26. It is one of the objective questions from the 2019 Neco Financial Accounting examination.
Difficulty level: Medium .
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