Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

A statement of profit or loss reports a draft loss for the year of $9450. Nevertheless, the following mistakes have been found. 1. Depreciation of $10 000 on non-current assets has been wrongly recorded by applying the straight-line method at 25% per annum. The true depreciation rate is 20% per annum. 2. No entry has been made for goods withdrawn by the owner for personal use, $720. What is the corrected draft loss?

  • A$6730
  • B$8170
  • C$8230
  • D$9670

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