Accounting 0452 · IGCSE · Capital and revenue expenditure and receipts

Capital and revenue expenditure and receipts — practice question

Paul worked out his profit for the year as $\$40\,000$. He later found these errors: • The expenses included rates prepaid, $\$1000$, for the next year. • Electricity owed of $\$600$ had been left out. • Sales returns worth $\$10\,000$ were not recorded. What was the correct profit for the year?

  • A$\$28\,400$
  • B$\$30\,400$
  • C$\$49\,600$
  • D$\$51\,600$

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