After finalizing the draft accounts for the year ended 30 June 23Y2 and its draft balance sheet as at 30 June 23Y2, ABC Inc discovered an error in the stock lists used to calculate the stock value as at 30 June 23Y2 The entry is as follows Stock item Number Cost per unit Total cost E456 160 3 20 512 Required (a) Explain the discrepancy in this entry (b) Assess the effects of the error on (i) the stock valuation as at 30 June 23Y2 (ii) the cost of goods sold for the year ended 30 June 23Y2 (iii) the net income for the year ended 30 June 23Y2 (iv) the total for Current Assets as at 30 June 23Y2

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Question: After finalizing the draft accounts for the year ended 30 June 23Y2 and its draft balance sheet as at 30 June 23Y2, ABC Inc discovered

After finalizing the draft accounts for the year ended 30 June 23Y2 and its draft balance sheet as at 30 June 23Y2, ABC Inc discovered an error in the stock lists used to calculate the stock value as at 30 June 23Y2. The entry is as follows:

Stock item	Number	Cost per unit	Total cost
E456	160	£3.20	£512

Required: (a) Explain the discrepancy in this entry. (b) Assess the effects of the error on: (i) the stock valuation as at 30 June 23Y2. (ii) the cost of goods sold for the year ended 30 June 23Y2. (iii) the net income for the year ended 30 June 23Y2. (iv) the total for Current Assets as at 30 June 23Y2.

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