Accounting 0452 · IGCSE · Capital and revenue expenditure and receipts

Capital and revenue expenditure and receipts — practice question

For the year ended 31 March 2022, Maria’s draft income statement reported a profit for the year of $38750. A $4800 bank loan at $5\%$ was obtained by Maria on 31 December 2021, but it was wrongly recorded as a revenue receipt. Also, the draft income statement for the year ended 31 March 2022 mistakenly included interest for a full year on the bank loan. What should the correct profit for the year ended 31 March 2022 be?

  • A$33770
  • B$34130
  • C$43370
  • D$43730

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI