Waec Model Questions Vol1 2018 Financial Accounting Question 27

The trial balance of ABC Enterprises at 31 December shows the following items (all figures in ₦):\n\nSales (credit) .............. 500,000\nPurchases (debit) ............ 300,000\nOpening Stock (debit) ........ 50,000\nClosing Stock (debit) ........ 40,000\nSalaries expense (debit) .... 45,000\nRent expense (debit) ........ 20,000\nDepreciation expense - Building (debit) - unknown\nInterest expense accrued but not yet recorded - unknown\nAccrued interest payable (credit) ........ 5,000\n\nAdditional information:\n- The building cost is ₦200,000 and is depreciated at 10% per annum on cost.\n- The business has a loan of ₦100,000 on which interest at 5% per annum is payable. ₦5,000 of interest has already been recorded in the trial balance.\n\nDetermine the net profit for the year.