The profit shown in the financial accounts was £11,287 and for the same period the cost account showed a profit of £2,704.

Examination of the accounts showed the following differences:

Reconcile the profit figures.

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Cost Accounts Financial Accounts Depreciation 9,826 10,520 Stock Valuations Opening Stocks 27,510 25,500 Closing Stocks 18,218 18,750 Profit on sale of asset 850 Dividends received 2,635 Imputed rent charge 3,250