Net profit for the year was calculated as 1,340. However, shortly afterwards the following errors were found.

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Net profit for the year was calculated as £1,340. However, shortly afterwards the following errors were found. Calculate the net profit once all the errors have been corrected.

(a) Sales of £560 were undercast by £96.

(b) Insurance of £76 was missed out of the income statement.

(c) Repairs to the vehicle for £42 were treated as revenue income.

(d) Purchases of £118 were entered into the accounts as £181.

(e) A sale of goods to J Bond for £120 was credited to the account of J Brand.

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Frank Woods Business Accounting Basics

ISBN: 9780273725008

1st Edition

Authors: Frank Wood, Mr David Horner

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