Neco Model Questions Vol1 2025 Financial Accounting Question 27
Practice objective / multiple choice question 27 from the 2025 Neco Model Questions Vol1 Financial Accounting examination.
The following trial balance (in \(\text{₦}\) thousands) is extracted for XYZ Ltd for the year ended 31 December 2025:\n\[\n\begin{array}{l r}\n\text{Sales (credit)} & 1,200 \\n\text{Opening Stock} & 180 \\n\text{Purchases} & 560 \\n\text{Carriage Inwards} & 20 \\n\text{Closing Stock} & 210 \\n\text{Salaries expense} & 150 \\n\text{Rent expense} & 80 \\n\text{Interest on loan} & 30 \\n\text{Equipment (cost)} & 120 \\n\text{Bad Debts written off} & 5 \ \end{array}\n\]\nAdditional information:\n- Depreciation on equipment is charged at 10 % per annum.\n- A provision for doubtful debts equal to 2 % of credit sales must be created.\nDetermine the net profit for the year.
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This is Neco Model Questions Vol1 2025 Financial Accounting Question 27. It is one of the objective questions from the 2025 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
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