Neco 2021 Financial Accounting Question 4

The trial balance of a sole trader as at 31 December 2021 shows the following figures (all amounts in \(\text{₦}\)):\n\n- Sales: 500,000\n- Opening stock: 60,000\n- Purchases: 300,000\n- Purchase returns: 10,000\n- Carriage inwards: 5,000\n- Sales returns: 12,000\n- Closing stock: 55,000\n- Salaries expense: 70,000\n- Rent expense paid: 24,000 (of which \(\text{₦}12,000\) is prepaid for the next year)\n- Depreciation expense: 15,000 (equipment cost \(\text{₦}150,000\), accumulated depreciation opening \(\text{₦}30,000\))\n- Interest received: 3,000\n- Interest payable (accrued): 2,000\n- Bad debts expense: 4,000 (allowance increased by \(\text{₦}1,000\))\n- Opening trade receivables: 40,000\n- Closing trade receivables: 45,000\n- Opening trade payables: 35,000\n- Closing trade payables: 30,000\n- Capital: 200,000\n- Drawings: 25,000\n\nCalculate the net profit for the year and the closing capital.