On reviewing the financial statements of a company, the company's accountant discovers that expenditure of 8,000 on

Question:

On reviewing the of a company, the company's accountant discovers that expenditure of £8,000 on repair to factory equipment has been incorrectly recorded as a part of the cost of the machinery. What will be the effect on the income statement (profit and loss account) and statement of financial position (balance sheet) when the error is corrected?
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...