Neco Model Questions Vol1 2022 Financial Accounting Question 38

The following information relates to XYZ Ltd for the year ended 31 December 2022:\n\n- Beginning share capital: \(\text{₦}500,000\)\n- Beginning share premium: \(\text{₦}150,000\)\n- Beginning retained earnings: \(\text{₦}200,000\)\n- Profit before tax for the year: \(\text{₦}120,000\)\n- Tax rate: 30%\n- Other comprehensive income (gain on revaluation of property): \(\text{₦}25,000\)\n- Dividends declared: \(\text{₦}40,000\)\n- During the year the company issued 5,000 new shares with a nominal value of \(\text{₦}10\) each at an issue price of \(\text{₦}15\) per share.\n- A prior‑period error was discovered: expenses of the previous year were understated by \(\text{₦}10,000\).\n\nCalculate the closing total equity of XYZ Ltd as at 31 December 2022 (express the answer in Naira).