While preparing its draft final accounts for the year ended 31 July 20Y6 and its draft balance sheet as at 31 July 20Y6, JKL Enterprises discovered a mistake in the stock lists used to value stock as at 31 July 20Y6 The entry was Stock item Number Cost per unit Total cost E567 50 6 20 310 Required (a) Describe the error in this entry (b) Determine the effects of this error on (i) the value of stock as at 31 July 20Y6 (ii) the cost of goods sold for the year ended 31 July 20Y6 (iii) the total for Current Assets as at 31 July 20Y6

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Question: While preparing its draft final accounts for the year ended 31 July 20Y6 and its draft balance sheet as at 31 July 20Y6, JKL Enterprises

While preparing its draft final accounts for the year ended 31 July 20Y6 and its draft balance sheet as at 31 July 20Y6, JKL Enterprises discovered a mistake in the stock lists used to value stock as at 31 July 20Y6. The entry was:

Stock item	Number	Cost per unit	Total cost
E567	50	£6.20	£310

Required: (a) Describe the error in this entry. (b) Determine the effects of this error on: (i) the value of stock as at 31 July 20Y6. (ii) the cost of goods sold for the year ended 31 July 20Y6. (iii) the total for Current Assets as at 31 July 20Y6.

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