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

Preparation of financial statements — practice question

A business's draft financial statements show a profit for the year of $64000 before allowing for the following adjustments: 1. the provision for doubtful debts is reduced by $300 2. office stationery costing $2400 has been bought but not recorded in the books; by the year end, only one-sixth of this stationery had been used. What is the adjusted profit for the year?

  • A$61900
  • B$63900
  • C$64100
  • D$64300

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