Neco 2020 Financial Accounting Question 4

A sole trader runs a small trading business. The following information relates to the business for the month of January 2022. Opening balances (01/01/2022): - Cash: ₦100,000 (debit) - Bank: ₦50,000 (debit) - Capital: ₦150,000 (credit) Transactions during January: 1. Sold goods for ₦80,000 cash. The cost of the goods sold was ₦50,000. 2. Purchased goods on credit for ₦60,000. Freight of ₦5,000 was paid in cash. 3. Paid wages of ₦12,000 in cash. 4. Received ₦30,000 from a debtor (Debtors account). 5. Paid rent of ₦10,000 in cash. Using the above information, answer the following: a) Post each transaction to the appropriate ledger accounts (Cash, Bank, Sales, Purchases, Freight‑In, Wages, Debtors, Creditors, Capital). b) Prepare a trial balance as at 31 January 2022. c) Compute the gross profit for the month. d) Determine the net profit after deducting wages and rent. e) State the closing balance of the Cash account.