Neco Model Questions Vol1 2022 Financial Accounting Question 1
Practice objective / multiple choice question 1 from the 2022 Neco Model Questions Vol1 Financial Accounting examination.
The following items are extracted from the trial balance of XYZ Ltd for the year ended 31 December 2022: \(\text{Sales}=\)N1,200,000, \(\text{Opening Stock}=\)N150,000, \(\text{Purchases}=\)N800,000, \(\text{Closing Stock}=\)N180,000, \(\text{Carriage Inwards}=\)N30,000, \(\text{Salaries}=\)N120,000, \(\text{Rent}=\)N60,000, \(\text{Trade Receivables}=\)N200,000, \(\text{Bad Debts written off}=\)N10,000. The building cost is N500,000 with a residual value of N50,000 and a useful life of 10 years (straight‑line). A provision for doubtful debts equal to 5 % of net receivables after bad debts is required. Compute the net profit for the year.
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This is Neco Model Questions Vol1 2022 Financial Accounting Question 1. It is one of the objective questions from the 2022 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
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