Enugu Global Ventures Plc extracted the following financial details for the year ended 31 December 2025:
- Gross profit: ₦3,200,000
- Rent and rates paid: ₦400,000
- Salaries and wages paid: ₦800,000
- Carriage outwards: ₦100,000
- Existing provision for doubtful debts: ₦30,000
Additional information at year-end:
1. Rent paid includes ₦40,000 prepaid for the next accounting period.
2. Salaries and wages of ₦60,000 remain accrued and unpaid.
3. The provision for doubtful debts is to be adjusted to a total of ₦80,000.
What is the net profit of the company for the year ended 31 December 2025?
- ₦1,830,000Cevap
- B₦1,870,000
- C₦1,800,000
- D₦1,930,000
Cevap
The net profit for the year ended 31 December 2025 is ₦1,830,000.
The correct answer of ₦1,830,000 is derived by deducting total operating expenses of ₦1,370,000 from the gross profit of ₦3,200,000. Total operating expenses comprise Rent of ₦360,000 (₦400,000 paid less ₦40,000 prepayment), Salaries of ₦860,000 (₦800,000 paid plus ₦60,000 accrued), Carriage Outwards of ₦100,000, and an increase in Provision for Doubtful Debts of ₦50,000 (₦80,000 required less ₦30,000 existing).
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Anahtar Kavram
Preparation of Company Statement of Profit or Loss with End-of-Year Adjustments