Waec Model Questions Vol1 2017 Financial Accounting Question 48

Using the trial‑balance data below, compute the net profit for the year. Sales                              800,000 Returns Inwards (sales returns)      20,000 Opening Stock                      120,000 Purchases                          350,000 Returns Outwards (purchase returns)  15,000 Carriage Inwards                    12,000 Wages                               45,000 Salaries                            30,000 Rent                                24,000 Depreciation on Machinery (8 % of 200,000)  16,000 Bad debts written off                5,000 Debtors at year‑end                 70,000 Creditors at year‑end                55,000 Closing Stock                       110,000 Provision for doubtful debts (2 % of Debtors) 1,400 Assume no opening provision for doubtful debts. What is the net profit?