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

Preparation of financial statements — practice question

A trader worked out his draft profit for the year to be $16000. The following items were still unadjusted. 1. decrease in prepaid insurance, $400 2. increase in closing inventory, $1200 3. decrease in provision for doubtful debts, $120 4. increase in accrued rent receivable, $300 What was the profit for the year after these items had been adjusted?

  • A$16620
  • B$16980
  • C$17220
  • D$17780

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI