Neco Model Questions Vol1 2019 Financial Accounting Question 40

The following trial balance (in Naira) is extracted from the books of XYZ Ltd. at 31 December 2020.\n\n| Account | Debit | Credit |\n|---|---|---|\n| Sales | | 800,000 |\n| Purchases | 300,000 | |\n| Opening Stock | 50,000 | |\n| Closing Stock | 70,000 | |\n| Carriage Inwards | 20,000 | |\n| Salaries | 90,000 | |\n| Rent | 40,000 | |\n| Depreciation Expense - Machinery | 15,000 | |\n| Machinery (cost) | 200,000 | |\n| Accumulated Depreciation - Machinery | | 60,000 |\n| Loan | | 100,000 |\n| Capital | | 250,000 |\n| Drawings | 30,000 | |\n\nAt year‑end it is discovered that a prepaid rent of 10,000 Naira was incorrectly charged to rent expense, and the correct depreciation for the year should be 25,000 Naira.\n\nDetermine the corrected net profit for the year.