In finalizing its draft final accounts for the year ended 31 May 24Y7 and its draft balance sheet as at 31 May 24Y7, GHI Ltd found an error in the stock lists used to compute stock value as at 31 May 24Y7 The entry was Stock item Number Cost per unit Total cost T123 95 3 80 361 Required (a) What is incorrect about this entry (b) Assess the impact of this error on (i) the stock valuation as at 31 May 24Y7 (ii) the cost of goods sold for the year ended 31 May 24Y7 (iii) the net profit for the year ended 31 May 24Y7 (iv) the Owners Equity as at 31 May 24Y7

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Question: In finalizing its draft final accounts for the year ended 31 May 24Y7 and its draft balance sheet as at 31 May 24Y7, GHI Ltd

In finalizing its draft final accounts for the year ended 31 May 24Y7 and its draft balance sheet as at 31 May 24Y7, GHI Ltd found an error in the stock lists used to compute stock value as at 31 May 24Y7. The entry was:

Stock item	Number	Cost per unit	Total cost
T123	95	£3.80	£361

Required: (a) What is incorrect about this entry? (b) Assess the impact of this error on: (i) the stock valuation as at 31 May 24Y7. (ii) the cost of goods sold for the year ended 31 May 24Y7. (iii) the net profit for the year ended 31 May 24Y7. (iv) the Owner’s Equity as at 31 May 24Y7.

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