After preparing its draft final accounts for the year ended 31 August 21Y0 and its draft balance sheet as at 31 August 21Y0, VWX Ltd discovered an error in the stock lists used to compute stock value as at 31 August 21Y0 The entry was Stock item Number Cost per unit Total cost I678 130 4 10 533 Required (a) Describe the error in this entry (b) Evaluate the impact of this error on (i) the stock value as at 31 August 21Y0 (ii) the cost of goods sold for the year ended 31 August 21Y0 (iii) the total for Current Assets as at 31 August 21Y0

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Question: After preparing its draft final accounts for the year ended 31 August 21Y0 and its draft balance sheet as at 31 August 21Y0, VWX Ltd

After preparing its draft final accounts for the year ended 31 August 21Y0 and its draft balance sheet as at 31 August 21Y0, VWX Ltd discovered an error in the stock lists used to compute stock value as at 31 August 21Y0. The entry was:

Stock item	Number	Cost per unit	Total cost
I678	130	£4.10	£533

Required: (a) Describe the error in this entry. (b) Evaluate the impact of this error on: (i) the stock value as at 31 August 21Y0. (ii) the cost of goods sold for the year ended 31 August 21Y0. (iii) the total for Current Assets as at 31 August 21Y0.

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