Neco Model Questions Vol1 2019 Financial Accounting Question 6
Practice objective / multiple choice question 6 from the 2019 Neco Model Questions Vol1 Financial Accounting examination.
A company had an opening capital of \(\,500,000\) Naira. During the year it introduced additional capital of \(\,63,000\) Naira and the owner withdrew drawings of \(\,30,000\) Naira. The profit before any adjustments was \(\,120,000\) Naira. The following items were not recorded in the trial balance: \(\) interest on a loan of \(\,200,000\) Naira at \(12\%\) per annum, a provision for doubtful debts equal to \(5\%\) of trade receivables of \(\,80,000\) Naira, and depreciation on plant which is \(10\%\) of the plant's cost. The closing capital shown in the balance sheet is \(\,610,000\) Naira. What is the cost of the plant?
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About This Question
This is Neco Model Questions Vol1 2019 Financial Accounting Question 6. It is one of the objective questions from the 2019 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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