Neco Model Questions Vol1 2024 Financial Accounting Question 43

A sole trader's incomplete records for the year ended 31 December 2024 show: - Opening stock \(\text{₦}60,000\) - Purchases recorded \(\text{₦}180,000\) - Purchase returns \(\text{₦}5,000\) - Freight‑in \(\text{₦}8,000\) - Closing stock \(\text{₦}70,000\) - Sales recorded \(\text{₦}300,000\) (cash sales were not recorded) - Trade discount allowed was \(2\%\) of total sales and was recorded. - Operating expenses recorded: salaries \(\text{₦}45,000\), rent \(\text{₦}20,000\), electricity \(\text{₦}8,000\). - Pre‑paid insurance of \(\text{₦}12,000\) was paid at the start of the year; only \(\text{₦}4,000\) has been expensed. - Depreciation on equipment (straight line) of \(\text{₦}15,000\) per year was omitted. - A bad debt of \(\text{₦}25,000\) was written off but not recorded. - Cash sales represent \(30\%\) of total sales. Determine the net profit for the year.