Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

The following mistakes in the accounting records have been discovered and corrected. 1 A purchase invoice worth $250 was not entered in the books of account. 2 A sale of $120 to X was posted to Y’s account instead. 3 The sales journal was overstated by $100. Before these errors were corrected, the gross profit for the year was $60 200. What should the gross profit for the year be after the correction?

  • A$59 850
  • B$59 970
  • C$60 350
  • D$60 550

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