Neco 2025 Financial Accounting Question 12

The following trial‑balance items (in \(\,\) thousands of naira) are given: Sales \(500\), Cost of Goods Sold \(300\), Opening Inventory \(80\), Closing Inventory \(70\), Purchases \(250\), Returns Inwards \(20\), Returns Outwards \(15\), Salaries Expense \(60\), Depreciation Expense - Building \(30\), Accumulated Depreciation - Building \(120\), Building cost \(500\), Interest Expense \(10\), Dividend Paid \(25\), Retained Earnings (beginning) \(100\), Share Capital \(400\). Additional information: (i) Building should be depreciated straight‑line over 20 years with a residual value of \(0.05\) million, giving a correct depreciation of \(22.5\) thousand. (ii) Bad‑debt expense of \(8\) thousand was incurred but only \(5\) thousand was written off. (iii) Interest income of \(12\) thousand was not recorded. (iv) Tax expense is 30 % of profit before tax. Prepare the statement of profit or loss and determine profit after tax.