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

Preparation of financial statements — practice question

A business reported a provisional profit for the year of $250000$. The following errors were later found. 1. Depreciation charged amounted to $25000$. It ought to have been $40000$. 2. Closing inventory for the period was undervalued by $10000$. Calculate the correct profit for the year.

  • A$225000
  • B$245000
  • C$255000
  • D$275000

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