Neco Model Questions Vol1 2021 Financial Accounting Question 12

Beta Co. prepared an unadjusted trial balance for the year ended 31 March 2021 (debit balances unless indicated). The balances are: Cash \(₦150,000\); Accounts Receivable \(₦80,000\); Inventory \(₦120,000\); Prepaid Expenses \(₦30,000\); Equipment \(₦200,000\); Accumulated Depreciation ‑ Equipment \(₦50,000\) (credit); Accounts Payable \(₦70,000\) (credit); Salaries Payable \(₦20,000\) (credit); Share Capital \(₦300,000\) (credit); Retained Earnings \(₦40,000\) (credit); Sales Revenue \(₦500,000\) (credit). No balances were shown for Cost of Goods Sold, Salaries Expense, Depreciation Expense or Rent Expense. The following adjusting entries are required: (i) 30 % of the inventory is obsolete and must be written down to a net realizable value of \(₦70,000\). (ii) One‑month of the prepaid expenses (\(₦30,000\)) has been used. (iii) Equipment is depreciated on a straight‑line basis over 5 years with no residual value. (iv) Salaries incurred but not yet paid amount to \(₦15,000\). After posting these adjustments, what is the net profit for the year?