Accounting 0452 · IGCSE · Capital and revenue expenditure and receipts

Capital and revenue expenditure and receipts — practice question

Once his financial statements had been prepared, a trader found these mistakes: 1. A revenue receipt of $1000 was entered as a capital receipt. 2. Capital expenditure of $800 was entered as revenue expenditure. 3. A capital receipt of $900 was entered as a revenue receipt. What was the net impact of these errors on the profit for the year?

  • Aoverstated by $700
  • Boverstated by $900
  • Cunderstated by $700
  • Dunderstated by $900

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