After finalizing the draft accounts for the year ended 31 March 20Y3 and its draft balance sheet as at 31 March 20Y3, LMN Co found an error in the stock lists used to calculate the stock value as at 31 March 20Y3 The entry is as follows Stock item Number Cost per unit Total cost B678 80 4 25 340 Required (a) Explain the discrepancy in this entry (b) Assess the effects of the error on (i) the stock valuation as at 31 March 20Y3 (ii) the cost of goods sold for the year ended 31 March 20Y3 (iii) the net income for the year ended 31 March 20Y3 (iv) the Current Assets as at 31 March 20Y3

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Question: After finalizing the draft accounts for the year ended 31 March 20Y3 and its draft balance sheet as at 31 March 20Y3, LMN Co found

After finalizing the draft accounts for the year ended 31 March 20Y3 and its draft balance sheet as at 31 March 20Y3, LMN Co found an error in the stock lists used to calculate the stock value as at 31 March 20Y3. The entry is as follows:

Stock item	Number	Cost per unit	Total cost
B678	80	£4.25	£340

Required: (a) Explain the discrepancy in this entry. (b) Assess the effects of the error on: (i) the stock valuation as at 31 March 20Y3. (ii) the cost of goods sold for the year ended 31 March 20Y3. (iii) the net income for the year ended 31 March 20Y3. (iv) the Current Assets as at 31 March 20Y3.

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