Neco Model Questions Vol1 2023 Financial Accounting Question 15

The following are the balances in the trial balance of ABC Ltd. (all amounts in ₦):\n\nSales Revenue \(\text{Cr}\) 500,000\nOpening Inventory \(\text{Dr}\) 50,000\nPurchases \(\text{Dr}\) 200,000\nClosing Inventory \(\text{Dr}\) 40,000 (to be adjusted)\nMachinery (cost) \(\text{Dr}\) 120,000\nAccumulated Depreciation - Machinery \(\text{Cr}\) 0\nRent Expense \(\text{Dr}\) 30,000\nSalaries Expense \(\text{Dr}\) 80,000\nLoan Payable \(\text{Cr}\) 100,000\nCapital \(\text{Cr}\) 150,000\nDrawings \(\text{Dr}\) 20,000\n\nAdditional information:\n1. Machinery has a useful life of 8 years, no salvage value; depreciation for the year is required.\n2. Interest on the loan is 10% per annum and has not been recorded.\n3. Physical count shows closing inventory is actually ₦45,000.\n\nPrepare the statement of profit or loss for the year and compute the closing capital (assume the entire profit is transferred to capital and drawings are deducted).