Accounting for IGCSE & O level - Accounting Procedures (Section 3 - No. 24)

In the books of finances there were 3 mistakes. What is the mistake where the profit has decreased?
An annual depreciation charge of $4,000 was overlooked.
Goods costing $2,000, purchased on credit from A. Matthews had not been entered in the accounting records.
$500 of goods sold on credit to B. Gray had been incorrectly entered to the sales account but had been omitted from the account of B. Gray.
A $4,000 expense, $5000 had been posted to the wrong side.

Explanation

An annual depreciation charge of $4,000 was overlooked, which reduces the profit.

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