After preparing its draft final accounts for the year ended 31 August 24Y8 and its draft balance sheet as at 31 August 24Y8, JKL Enterprises discovered an error in the stock lists used to compute stock value as at 31 August 24Y8 The entry was Stock item Number Cost per unit Total cost U345 120 4 40 528 Required (a) Describe the error in this entry (b) Evaluate the impact of this error on (i) the stock value as at 31 August 24Y8 (ii) the cost of goods sold for the year ended 31 August 24Y8 (iii) the net profit for the year ended 31 August 24Y8 (iv) the total for Current Assets as at 31 August 24Y8

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Question: After preparing its draft final accounts for the year ended 31 August 24Y8 and its draft balance sheet as at 31 August 24Y8, JKL Enterprises

After preparing its draft final accounts for the year ended 31 August 24Y8 and its draft balance sheet as at 31 August 24Y8, JKL Enterprises discovered an error in the stock lists used to compute stock value as at 31 August 24Y8. The entry was:

Stock item	Number	Cost per unit	Total cost
U345	120	£4.40	£528

Required: (a) Describe the error in this entry. (b) Evaluate the impact of this error on: (i) the stock value as at 31 August 24Y8. (ii) the cost of goods sold for the year ended 31 August 24Y8. (iii) the net profit for the year ended 31 August 24Y8. (iv) the total for Current Assets as at 31 August 24Y8.

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