Neco 2019 Financial Accounting Question 48

The trial balance of XYZ Ltd. (excerpt) shows the following amounts (in Naira):\n\nCash \(50,000\)\nDebtors \(80,000\)\nInventory (opening) \(60,000\)\nEquipment cost \(120,000\)\nAccumulated depreciation - Equipment \(30,000\)\nAccounts payable \(40,000\)\nBank loan \(70,000\)\nCapital \(150,000\)\nDrawings \(20,000\)\nSales \(200,000\)\nPurchases \(120,000\)\nRent expense \(15,000\)\nSalaries expense \(25,000\)\n\nAdditional information:\n- Closing inventory is \(N70,000\).\n- Equipment depreciation for the year is 12% of cost.\n- A provision for doubtful debts of 5% of debtors is required.\n- The equipment is revalued upward by \(N20,000\) and the increase is recorded as a revaluation surplus (does not affect profit).\n\nPrepare the statement of profit or loss and state the net profit for the year.