Neco Model Questions Vol1 2018 Financial Accounting Question 17
Practice objective / multiple choice question 17 from the 2018 Neco Model Questions Vol1 Financial Accounting examination.
The trial balance of ABC Ltd for the year ended 31 December shows the following items (all figures in \(\text{₦}\) thousands):\n\nSales: 1,200\nOpening Stock: 80\nPurchases: 500\nCarriage Inwards: 20\nSalaries: 150\nRent: 60\nPlant and Machinery (cost): 300\nAccumulated Depreciation (contra): 90\nBad Debts written off: 12\nTrade Receivables (net): 80\nTrade Payables: 70\n\nAdditional information:\n1. Closing stock is 30% of the cost of goods sold.\n2. Depreciation for the year is 10% of the plant cost.\n3. A provision for doubtful debts equal to 2% of trade receivables after adjusting for the bad debts written off is required.\n\nDetermine the Net Profit for the year.
Answer Options
About This Question
This is Neco Model Questions Vol1 2018 Financial Accounting Question 17. It is one of the objective questions from the 2018 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
Master the Exam!
You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.