Neco Model Questions Vol1 2025 Financial Accounting Question 25

The trial balance of a sole trader for the year ended 31 December shows the following balances (debits unless otherwise stated):\n\n- Sales: \(\₦500,000\) (credit)\n- Purchases: \(\₦300,000\) (debit)\n- Opening stock: \(\₦80,000\) (debit)\n- Salaries expense: \(\₦50,000\) (debit)\n- Rent expense: \(\₦30,000\) (debit)\n- Depreciation expense: \(\₦20,000\) (debit)\n- Equipment cost: \(\₦100,000\) (debit)\n- Accumulated depreciation: \(\₦0\) (credit)\n- Capital: \(\₦200,000\) (credit)\n- Drawings: \(\₦40,000\) (debit)\n\nThe trial balance totals are equal. However, the correct depreciation for the year should be \(\₦15,000\) and the closing stock of \(\₦70,000\) was omitted from the trial balance.\n\n(a) State the adjusting journal entries required to correct these two errors.\n(b) After the adjustments, what is the corrected net profit for the year?