Neco 2019 Financial Accounting Question 3
Practice objective / multiple choice question 3 from the 2019 Neco Financial Accounting examination.
A trader keeps a single‑entry cash book. The following information is available for the year:\n- Opening stock: \(\text{₦}50,000\).\n- Purchases on credit: \(\text{₦}120,000\).\n- Sales on credit: \(\text{₦}180,000\).\n- Cash receipts from customers: \(\text{₦}140,000\).\n- Cash payments to suppliers: \(\text{₦}100,000\).\n- Opening cash balance: \(\text{₦}20,000\).\n- Cash sales represent \(30\%\) of total sales.\n- Closing stock: \(\text{₦}70,000\).\n- Cash expenses (excluding purchases) paid during the year amount to \(\text{₦}30,000\).\nAssuming the cash‑book closing cash balance is correct, determine the trader's net profit for the year.
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About This Question
This is Neco 2019 Financial Accounting Question 3. It is one of the objective questions from the 2019 Neco Financial Accounting examination.
Difficulty level: Hard .
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