Waec Model Questions Vol1 2020 Financial Accounting Question 39

The following unadjusted trial balance (in ₦) is extracted from the books of a manufacturing firm. All totals balance. | Account | Debit | Credit | |-----------------------------|-------|--------| | Sales Revenue | | 1,200,000 | | Purchases (Cost of Goods) | 500,000 | | | Salaries Expense | 260,000 | | | Rent Expense | 120,000 | | | Prepaid Rent | 60,000 | | | Equipment (Cost) | 300,000 | | | Capital | | 500,000 | | Drawings | 100,000 | | | Cash | 720,000 | | | Suppliers Payable | | 360,000 | Adjusting entries required at year‑end are: 1. Depreciation on equipment (cost ₦300,000, residual value ₦30,000, useful life 5 years) - straight‑line. 2. Salaries of ₦20,000 accrued but not yet paid. 3. Only 8 of the 12 months of rent have been used; the remaining 4 months should be transferred back to Prepaid Rent. After posting the adjusting entries, what is the net profit for the year?