Accounting 0452 · IGCSE · Correction of errors

Correction of errors — practice question

Once Yui had worked out his profit for the year, he found the following errors. 1. A purchase of a new motor vehicle costing $3200 had been debited to motor expenses. 2. The purchases account had been overcast by $500. What effect did correcting these errors have on the profit for the year? (Ignore depreciation)

  • AIt decreased by $2700.
  • BIt decreased by $3700.
  • CIt increased by $2700.
  • DIt increased by $3700.

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