Accounting 9706 · AS & A Level · Preparation of financial statements

Preparation of financial statements — practice question

A bookkeeper with little experience worked out a draft profit for the year ended 31 December 2015 of $578500. He had omitted the following items: Provision for doubtful debts: $12800 on 1 January 2015 and $11300 on 31 December 2015. Provision for depreciation: $95000 on 1 January 2015 and $126200 on 31 December 2015. What was the adjusted profit for the year?

  • A$441000
  • B$463600
  • C$545800
  • D$548800

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