When reporting the profit and year-end position for 2012 a business did not take into account:

(i) Cost of goods lost by fire £56,400

(ii) Related insurance claim admitted at £45,000

The impact of correcting these errors would be:

Transcribed Image Text:

Gross profit Net profit +£56,400 +£45,000 +£45,000 -£11,400 a +£56,400 b C +£56,400 d+£56,400 Net assets +£56,400 +£45,000 +£45,000 +£45,000