The unadjusted trial balance of XYZ Ltd. as at 31 December is shown below (all figures in $\text{₦}$):\n\nCash Dr 80,000\nAccounts Receivable Dr 70,000\nInventory Dr 120,000\nEquipment Dr 150,000\nSalaries Expense Dr 110,000\nRent Expense Dr 40,000\nDrawings Dr 20,000\nAccumulated Depreciation - Equipment Cr 30,000\nAccounts Payable Cr 60,000\nCapital Cr 250,000\nSales Cr 500,000\n\nThe following adjusting entries are required:\n1. Depreciation expense on equipment $\text{₦}20,000$.\n2. Accrued salaries expense $\text{₦}15,000$.\nPrepare the adjusted trial balance and state the net profit for the period.

Question

The unadjusted trial balance of XYZ Ltd. as at 31 December is shown below (all figures in $\text{₦}$):\n\nCash Dr 80,000\nAccounts Receivable Dr 70,000\nInventory Dr 120,000\nEquipment Dr 150,000\nSalaries Expense Dr 110,000\nRent Expense Dr 40,000\nDrawings Dr 20,000\nAccumulated Depreciation - Equipment Cr 30,000\nAccounts Payable Cr 60,000\nCapital Cr 250,000\nSales Cr 500,000\n\nThe following adjusting entries are required:\n1. Depreciation expense on equipment $\text{₦}20,000$.\n2. Accrued salaries expense $\text{₦}15,000$.\nPrepare the adjusted trial balance and state the net profit for the period.

Accepted Answer

Adjusted trial balance balances at ₦875,000 on each side; Net profit = ₦315,000

Neco 2020 Financial Accounting Question 20

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