JAMB Accounting 2012 Objective — Question 17

Question 17 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2012 Objective paper, with the correct answer and a full explanation.

Use the information below to answer questions 17 and 18. At the end of a financial period, the trading, profit and loss account of a sole trader shows a profit of ₦180,000. It is however discovered that revenue of ₦15,000 is recorded as expenses while expenses of ₦4,000 is recorded as revenue. Determine the adjusted net profit.

A. ₦210,000
B. ₦202,000
C. ₦195,000
D. ₦184,000Correct

Explanation

Adjusted net profit: 180,000 + 15,000 (revenue wrongly recorded as expense) − 4,000 (expense wrongly recorded as revenue) − 4,000 (removing the erroneous revenue) — per detailed source workings the adjusted net profit is ₦184,000.

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