Neco Model Questions Vol1 2021 Commerce Question 28
Practice objective / multiple choice question 28 from the 2021 Neco Model Questions Vol1 Commerce examination.
The partial statement of financial position of ABC Ltd as at 31 December 2021 shows: Assets - Cash: ₦150,000 - Inventory: ₦250,000 - Equipment (cost ₦500,000, accumulated depreciation unknown) Liabilities - Trade creditors: ₦180,000 - Bank loan: ₦120,000 Equity - Share capital: ₦300,000 - Retained earnings: ? The profit and loss account for the year records: Sales: ₦1,200,000 Cost of goods sold: ₦720,000 Administrative expenses: ₦150,000 Depreciation expense: ₦40,000 Interest expense: ₦10,000 Tax expense: 30 % of taxable profit. No dividends were paid during the year. Using the accounting equation, determine the amount of retained earnings at year‑end.
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This is Neco Model Questions Vol1 2021 Commerce Question 28. It is one of the objective questions from the 2021 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Hard .
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