Neco 2025 Financial Accounting Question 5
Practice objective / multiple choice question 5 from the 2025 Neco Financial Accounting examination.
The trial balance of a sole trader for the year ended 31 December shows: Sales \(500,000\) naira, Purchases \(300,000\) naira, Opening stock \(70,000\) naira, Closing stock \(80,000\) naira, Salaries \(60,000\) naira, Rent \(30,000\) naira, Depreciation - building \(15,000\) naira, Depreciation - machinery \(20,000\) naira, Interest payable \(5,000\) naira, Capital (1 Jan) \(200,000\) naira, Drawings \(40,000\) naira, Trade receivables \(50,000\) naira. At year‑end a provision for doubtful debts equal to 2% of trade receivables is required. No other adjustments are needed. Determine the net profit for the year (before tax).
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About This Question
This is Neco 2025 Financial Accounting Question 5. It is one of the objective questions from the 2025 Neco Financial Accounting examination.
Difficulty level: Medium .
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