Self-test Show how each of the following errors affect the net profit of J Black for the year ended 31 December 2009.

(i) Opening stock is overvalued by £852.

(ii) A loan of £5,000 made to Black was credited to the profit and loss account.

(iii) Discounts received of £210 were debited to the profit and loss account.

(iv) Credit purchases of £760 were not entered into the purchases day book.

(v) Interest on Black’s bank deposit of £130 was treated as interest charged in the profit and loss account.

The net profit as calculated before the above errors were discovered was £6,700.