Neco Model Questions Vol1 2020 Financial Accounting Question 49

For a sole trader the following incomplete information is available for the year ended 31 December 2020:\n\n- Sales: \(500,000\) Naira\n- Purchases: \(300,000\) Naira\n- Opening stock: \(80,000\) Naira\n- Closing stock: unknown\n- Trade expenses: \(20,000\) Naira\n- Salaries: \(50,000\) Naira\n- Depreciation on equipment (straight‑line) = \(12,000\) Naira per year (cost \(60,000\) Naira, residual \(0\), useful life 5 years)\n- Drawings: \(30,000\) Naira\n- Capital at the beginning of the year: \(150,000\) Naira\n- Net profit reported in the accounts: \(70,000\) Naira (based on the incomplete records)\n\nIt is later discovered that an office‑supplies purchase of \(5,000\) Naira was omitted (should be recorded as an expense) and that a piece of equipment costing \(20,000\) Naira with accumulated depreciation \(8,000\) Naira was sold for \(15,000\) Naira but the sale was not recorded. Determine the correct value of the closing stock.