Neco Model Questions Vol1 2024 Financial Accounting Question 35

The unadjusted trial balance of DEF Ltd. for the year ended 31 December is: | Account | Debit | Credit | |---|---|---| | Sales Revenue | - | 500,000 | | Service Revenue | - | 150,000 | | Cost of Goods Sold | 300,000 | - | | Salaries Expense | 80,000 | - | | Rent Expense | 40,000 | - | | Utilities Expense | 20,000 | - | | Machinery (cost) | 200,000 | - | | Accumulated Depreciation - Machinery | - | 50,000 | | Prepaid Insurance | 12,000 | - | | Capital | - | 300,000 | | Drawings | 30,000 | - | Adjustments to be made: - Depreciation on machinery: straight‑line, cost \(\text{₦}200,000\), residual value \(\text{₦}20,000\), useful life 5 years. - Accrued interest expense of \(\text{₦}5,000\) not yet recorded. - Insurance expense for the year is \(\text{₦}12,000\) (the prepaid amount is fully used). After posting these adjustments, what is the net profit for the year?