Calculate the new net profit

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Problem 1: Neelopa Enterprise's financial statement for the year ended 31 December 2020 has showed a net profit of RM100, 500. On 2 March that year, the company bought a van that cost RM70,000. This transaction was debited in the motor repairs and maintenance accounts. The company policy is to depreciate motor vehicles using straight line basis at 15 percent per annum and with a full year charge in the year of acquisition. It was discovered that 5% interest on loan of RM120,000 was also left out. Calculate the new net profit.

Reference no: EM132931927

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