Accounting 0452 · IGCSE · Capital and revenue expenditure and receipts

Capital and revenue expenditure and receipts — practice question

Maria’s draft income statement for the year ended 31 March 2022 reported a profit for the year of \$38 750. On 31 December 2021, Maria obtained a 5% bank loan of \$4800, but this was wrongly recorded as a revenue receipt. Through an error, interest for a full year on the bank loan was included in the draft income statement for the year ended 31 March 2022. What was the correct profit for the year ended 31 March 2022?

  • A\$33 770
  • B\$34 130
  • C\$43 370
  • D\$43 730

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