Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

A business reported a profit for the year of $450000 before the following errors were adjusted. 1. Closing inventory had been undervalued by $15000. 2. Sales returns worth $5000 had been entered as purchases returns. 3. The depreciation charge had been overstated by $20000. What was the profit after these errors had been corrected?

  • A$435000
  • B$445000
  • C$475000
  • D$495000

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