Accounting 0452 · IGCSE · Correction of errors

Correction of errors — practice question

A trader’s draft income statement indicated a profit for the year of $2400. Later, these errors were identified: (1) No adjustment was entered for accrued income of $8000. (2) Carriage inwards costing $250 had been entered as carriage outwards. (3) An increase in provision for doubtful debts of $120 had been added to the gross profit for the year. What is the corrected profit for the year?

  • A$3260
  • B$3260
  • C$3280
  • D$3240

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