Neco Model Questions Vol1 2025 Financial Accounting Question 41
Practice objective / multiple choice question 41 from the 2025 Neco Model Questions Vol1 Financial Accounting examination.
Company X prepared a trial balance for the year ended 31 December as follows (all figures in \(\text{₦}\)): Sales \(500,000\); Opening Stock \(50,000\); Purchases \(200,000\); Closing Stock \(70,000\); Salaries \(40,000\); Rent \(20,000\); Equipment cost \(80,000\). During the year, depreciation on equipment was charged at 10% of cost, and bad debts expense was 2% of credit sales (credit sales are 80% of total sales). The provision for doubtful debts at the beginning of the year was \(5,000\) and was increased to \(6,000\) at year‑end. Determine the net profit for the year.
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This is Neco Model Questions Vol1 2025 Financial Accounting Question 41. It is one of the objective questions from the 2025 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
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