Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

A sole trader made a $50\%$ mark-up on his goods. In the year, he took goods for personal use. The drawings account was debited, and the sales account was credited with goods valued at the selling price of $5400. What effect did these errors have on the profit for the year?

  • A$1800 overstated
  • B$1800 understated
  • C$2700 overstated
  • D$2700 understated

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