While preparing its draft final accounts for the year ended 31 October 20Y8 and its draft balance sheet as at 31 October 20Y8, PQR Inc discovered a mistake in the stock lists used to compute stock value as at 31 October 20Y8 The entry was Stock item Number Cost per unit Total cost G901 110 3 45 379 50 Required (a) Identify the error in this entry (b) Discuss the implications of this error on (i) the stock value as at 31 October 20Y8 (ii) the cost of goods sold for the year ended 31 October 20Y8 (iii) the total for Current Assets as at 31 October 20Y8

The Answer is in the image, click to view ...

Question: While preparing its draft final accounts for the year ended 31 October 20Y8 and its draft balance sheet as at 31 October 20Y8, PQR Inc

While preparing its draft final accounts for the year ended 31 October 20Y8 and its draft balance sheet as at 31 October 20Y8, PQR Inc discovered a mistake in the stock lists used to compute stock value as at 31 October 20Y8. The entry was:

Stock item	Number	Cost per unit	Total cost
G901	110	£3.45	£379.50

Required: (a) Identify the error in this entry. (b) Discuss the implications of this error on: (i) the stock value as at 31 October 20Y8. (ii) the cost of goods sold for the year ended 31 October 20Y8. (iii) the total for Current Assets as at 31 October 20Y8.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

While preparing its draft final accounts for the year ended 31 July 21Y6 and its draft balance sheet as at 31 July 21Y6, PQR Ltd discovered a mistake in the stock lists used to value stock as at 31...

While preparing its draft final accounts for the year ended 31 March 24Y9 and its draft balance sheet as at 31 March 24Y9, LMN Ltd discovered a mistake in the stock lists used to compute the stock...

While preparing its draft final accounts for the year ended 31 July 22Y6 and its draft balance sheet as at 31 July 22Y6, VWX Ltd discovered a mistake in the stock lists used to value stock as at 31...

While preparing its draft final accounts for the year ended 31 March 24Y0 and its draft balance sheet as at 31 March 24Y0, NOP Ltd discovered a mistake in the stock lists used to compute the stock...

While preparing its draft final accounts for the year ended 31 July 24Y4 and its draft balance sheet as at 31 July 24Y4, ZAB Enterprises discovered a mistake in the stock lists used to value stock as...

While preparing its draft final accounts for the year ended 31 July 23Y5 and its draft balance sheet as at 31 July 23Y5, JKL Enterprises discovered a mistake in the stock lists used to value stock as...

While preparing its draft final accounts for the year ended 31 March 21Y1 and its draft balance sheet as at 31 March 21Y1, YZA Corp discovered a mistake in the stock lists used to compute the stock...

While preparing its draft final accounts for the year ended 31 March 22Y1 and its draft balance sheet as at 31 March 22Y1, GHI Corp discovered a mistake in the stock lists used to compute the stock...

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...

After preparing its draft final accounts for the year ended 31 March 20X6 and its draft balance sheet as at 31 March 20X6 a business discovered that the stock lists used to compute the value of stock...

Calculate how much money you would need to put aside at the beginning of each month for the next 30 years in order to have the sum of 3,300,387. You estimate conservatively that your money will earn...

The New York Times published an article about a man who claimed that his tax rate was 102 per-cent of his income [Stewart, 2012]. He computed this figure by taking the ratio of his tax payments to...

2. LO.1 The alternative minimum tax applies to an S corporation. Discuss the validity of this statement.

A hula hoop and solid disc of equal radii are rolled, from rest and without slipping, down an incline plane. Which one will reach the bottom of the inclined plane first? Explain.

1In what ways, if at all, are the models in the competing values framework supported by the Innocent case?

1 What seems to you unusual about their approach to managing a business?

1 Compare the cultures of two organisational units, using Quinns or Handys typologies?