Neco 2020 Financial Accounting Question 29

The trial balance of a sole trader before adjustments (all figures in Naira) is as follows:\n\nDebit side: Cash \(15{,}000\), Bank \(15{,}000\), Debtors \(30{,}000\), Inventory (opening) \(20{,}000\), Prepaid rent \(3{,}000\), Equipment \(50{,}000\), Rent expense \(6{,}000\), Salaries expense \(20{,}000\), Purchases \(55{,}000\).\n\nCredit side: Capital \(80{,}000\), Sales \(100{,}000\), Creditors \(12{,}000\), Loan payable \(8{,}000\).\n\nTotal debits and credits both equal \(120{,}000\).\n\nAdditional information:\n- Depreciation on equipment is to be charged at \(10\%\) of its cost.\n- At year‑end an accrued rent expense of \(1{,}500\) has not been recorded.\n- The prepaid rent of \(3{,}000\) relates to rent for the next year and therefore should be deducted from this year's rent expense.\n- The gross profit ratio is known to be \(30\%\) of sales.\n\nDetermine (i) the closing inventory and (ii) the net profit for the year after all adjustments.