Accounting for IGCSE & O level - Accounting Procedures (Section 6 - No. 35)
The summary for the impact on the financial position after error corrections shows:
Reduce non-current assets by $7,000.
Reduce draft profit by $9,500.
Reduce trade receivables understated by $1,000.
Increase trade payables by $4,000.
Explanation
An annual depreciation charge of $4,000 was overlooked. A non-recordable of sales is not accounted for, resulting in a further reduction of $5,500. Together the error corrections result in a reduction of $9,500.
Comments (0)
