Final Accounts of Sole Traders
GCE Financial Accounting

Adaeze Okonkwo is a sole trader who keeps her books on the accruals basis. The following balances were extracted from her ledger on 31 December 2023: Capital (1 January 2023): ₦480,000; Drawings: ₦62…

The following information relates to the business of Mr. Emeka Eze, a sole trader, for the year ended 30 June 2023. (a) Explain FOUR distinctions between a Trading Account and a Profit and Loss Accou…

Eze's business had opening stock of ₦45,000, purchases of ₦180,000, carriage inwards of ₦5,000, and closing stock of ₦30,000. What is the cost of goods sold?

A sole trader's net sales were ₦320,000 and the cost of goods sold was ₦200,000. Selling expenses amounted to ₦35,000 and administrative expenses to ₦25,000. What is the net profit?

Which of the following items would appear on the credit side of a Profit and Loss Account?

Which of the following best describes the purpose of a Trading Account?

A sole trader's capital at the beginning of the year was ₦240,000. During the year, he made a net profit of ₦90,000 and withdrew ₦50,000 for personal use. He also introduced additional capital of ₦30,…

The following information relates to Bello's business for the year ended 31 December 2023: Sales ₦600,000; Returns inwards ₦20,000; Opening stock ₦50,000; Purchases ₦350,000; Returns outwards ₦15,000;…

A provision for doubtful debts account had an opening balance of ₦12,000. At the year end, debtors totalled ₦200,000 and the provision is to be maintained at 5% of debtors. What amount will be charged…

Adaeze, a sole trader, had the following balances: Capital ₦500,000; Long-term loan ₦100,000; Trade creditors ₦80,000; Accrued expenses ₦20,000. What is the total of her long-term liabilities?

In the final accounts of a sole trader, carriage inwards is treated as