Neco Model Questions Vol1 2018 Financial Accounting Question 25
Practice objective / multiple choice question 25 from the 2018 Neco Model Questions Vol1 Financial Accounting examination.
A sole trader's trial balance includes: Sales \(2,500,000\); Purchases \(1,200,000\); Opening Stock \(300,000\); Closing Stock \(350,000\); Salaries expense \(250,000\); Rent expense \(120,000\); Depreciation expense \(80,000\); Interest expense \(30,000\); Drawings \(100,000\); Capital (beginning) \(500,000\). The trader also bought a delivery van for cash \(400,000\) during the year. The van is depreciated straight‑line over 5 years with no residual value (depreciation recorded as above). Compute (a) the profit for the year and (b) the closing capital.
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About This Question
This is Neco Model Questions Vol1 2018 Financial Accounting Question 25. It is one of the objective questions from the 2018 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
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