Accounting 9706 · AS & A Level · Accounting for non-current assets

Accounting for non-current assets — practice question

Jason disposed of a non-current asset that had a carrying value of $8000. He incorrectly entered the transaction by debiting the bank account and crediting the sales account with proceeds of $6500. By what amount was the profit for the year overstated?

  • A$1500
  • B$5000
  • C$6500
  • D$8000

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