Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

Once the profit for the year had been worked out, the errors below were found. 1 Discount allowed of $550$ had been entered as discount received. 2 Rental income of $3500$ had been entered as an expense. 3 Wages of $4500$ had been entered as $5400$. How will correcting these errors affect the profit for the year?

  • Adecrease by $3850$
  • Bdecrease by $6800$
  • Cincrease by $3850$
  • Dincrease by $6800$

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