Adjustments to Final Accounts

Consider the financial data extracted from the books of Kalu Enterprises at the end of the accounting period. Fill in the blanks with the correct numerical values.

A business evaluated its unsold inventory at the end of the accounting period. The cost price of the inventory was $\text{N}85,000$, while its net realizable value was determined to be $\text{N}78,000$. Following the prudence convention, what amount should be credited to the Trading Account as closing stock?

At 31st December 2025, the trial balance of Danjuma Trading Enterprise showed Trade Receivables of $\text{₦}160,000$ and an existing Provision for Doubtful Debts of $\text{₦}6,400$.

Additional information:
1. Additional bad debts of $\text{₦}10,000$ are to be written off.
2. A specific debt of $\text{₦}4,000$ is identified as doubtful and requires a 100% provision.
3. A general provision for doubtful debts is to be set at $5\%$ of the remaining trade receivables.

What is the net amount (in $\text{₦}$) to be charged to the Income Statement (Profit and Loss Account) for provision for doubtful debts for the year ended 31st December 2025?

The ledger of Tunde & Co. shows a Trade Debtors balance of $\text{₦}120,000$ at the end of the accounting period. Additional information reveals that bad debts of $\text{₦}5,000$ are to be written off, a Provision for Doubtful Debts is to be maintained at $5\%$ on net debtors, and a Provision for Discount on Debtors is to be created at $2\%$. What is the amount of the new Provision for Discount on Debtors to be created?

Chief Okon withdrew goods costing ₦18,000 from his supermarket for private family consumption. The retail selling price of these goods was ₦24,000. Which of the following correctly describes the double-entry adjustment required to record this transaction in the final accounts?

At 31st March 2026, the trial balance of Okonkwo Stores showed Trade Receivables of $\text{₦}250,000$ and an existing Provision for Doubtful Debts of $\text{₦}8,000$. An additional bad debt of $\text{₦}10,000$ is to be written off, and the provision for doubtful debts is to be adjusted to $5\%$ of the remaining trade receivables. What is the net amount (in $\text{₦}$) to be charged as an expense to the Profit and Loss Account for provision for doubtful debts?

Mrs. Adebayo, a boutique owner, prepared a draft Trading Account that reported a Gross Profit of ₦180,000. It was subsequently discovered that goods costing ₦35,000, with a retail selling price of ₦50,000, taken by the owner for personal use were erroneously recorded by crediting the Sales Account at selling price, while no entry was made in Purchases. What is the corrected Gross Profit?

Mrs. Adebayo, a sole trader, withdrew goods costing $\text{₦}15,000$ (with a retail selling price of $\text{₦}22,000$) from her inventory for personal family use. Which of the following is the correct double entry to record this transaction?

A firm has unsold inventory at the end of the accounting period with a total cost of $\text{N}95,000$. The estimated selling price of this inventory is $\text{N}90,000$, and the estimated expenses necessary to complete the sale are $\text{N}2,000$. In accordance with the prudence concept, what is the value of closing stock (in Naira) to be credited to the Trading Account?

At 31st December 2025, the trial balance of Zainab Stores showed Trade Debtors of $\text{₦}200,000$ and an existing Provision for Doubtful Debts of $\text{₦}8,000$. An additional bad debt of $\text{₦}20,000$ is to be written off, and the provision for doubtful debts is to be maintained at $5\%$ of the remaining trade debtors. What is the amount to be charged to the Profit and Loss Account for the provision for doubtful debts?

Mrs. Adebayo, a sole proprietor, withdrew inventory costing $\text{₦}35,000$ (with a marked retail selling price of $\text{₦}50,000$) from her boutique for her family's personal use. What is the correct double entry required to adjust for this transaction in the final accounts?

In the books of Chidiebere Enterprise, Trade Debtors stand at $\text{₦}200,000$ at the end of the financial year. Additional information reveals that bad debts of $\text{₦}20,000$ are to be written off, a provision for doubtful debts is to be created at $5\%$, and a $2\%$ provision for discount on debtors is to be provided for. Calculate the required figures to complete the financial statement extract.

At the end of the accounting period, a trader's physical stock count reveals inventory with a total cost price of $\text{N}75,000$. The expected selling price of this inventory is $\text{N}72,000$, and the estimated costs to sell are $\text{N}4,000$. Calculate the value of closing stock (in Naira) to be credited to the Trading Account in accordance with the prudence concept.

The trial balance of Danladi Commercial Ventures as at 31st December 2025 shows Trade Debtors of $\text{₦}180,000$. Additional information reveals that bad debts of $\text{₦}10,000$ are to be written off, a provision for doubtful debts is to be maintained at $5\%$ on the remaining debtors, and a provision for discount on debtors of $2\%$ is to be established. What is the net Trade Debtors balance to be presented in the Statement of Financial Position?

Tunde Enterprises extracted a trial balance at year-end showing Purchases of $\text{₦}450,000$ and Opening Inventory of $\text{₦}60,000$. Closing Inventory was valued at $\text{₦}80,000$. During the financial period, the proprietor withdrew goods costing $\text{₦}25,000$ (with a retail selling price of $\text{₦}35,000$) for private use, but no entry was made in the accounting books. What is the corrected Cost of Goods Sold for the period in Naira?

Emeka Enterprises extracted a Trial Balance on 31 December 2025 showing Purchases of $\text{₦}450,000$ and Sales of $\text{₦}720,000$. Before closing the books, it was discovered that inventory costing $\text{₦}30,000$ (with a retail selling price of $\text{₦}45,000$) withdrawn by the proprietor for personal use had been mistakenly recorded in the Sales Journal as a credit sale to a customer. What are the corrected figures for Purchases and Sales to be presented in the Trading Account?

Emeka, a building materials dealer, took items costing ₦120,000 from his business inventory for personal construction at his private residence. The retail selling price of these goods was ₦160,000. Which of the following journal entries correctly records this transaction?

The ledger of Emeka & Sons Enterprise as at 31st December 2025 showed a Trade Debtors balance of $\text{₦}250,000$. Additional information indicates that an additional bad debt of $\text{₦}10,000$ is to be written off, a $5\%$ Provision for Doubtful Debts is to be created on the remaining debtors, and a $2\%$ Provision for Discount on Debtors is to be maintained. What is the net amount of Trade Debtors to be presented in the Statement of Financial Position?

Complete the accounting statement below regarding the journal entry for goods taken by a sole proprietor for private consumption.

On 1st January 2024, Chidi Enterprise had an existing Provision for Doubtful Debts of $\text{₦}4,000$. At 31st December 2024, the business's ledger showed Trade Debtors of $\text{₦}110,000$. An additional bad debt of $\text{₦}10,000$ is to be written off before creating a provision for doubtful debts at $5\%$ on remaining trade debtors. What amount will be debited to the Profit and Loss Account as provision for doubtful debts for the year ended 31st December 2024?