2. A business supplies the following information ce insurance: Insurance paid during the year 2002 $1,200 Prepaid intrance on January 2002 5 200 Prepaid insurance on 31 December 2002 $ 350 If the accrual concept of accousting is used the insurance expense for year 2002 is a $1,750 b) 51.050 C) 51.400 d) $1.350 When both entries are made on the same side of both the accounts, correction of the error will require A) an merutat double the original error b) an amount of the originalettor c) transfer to the correct account d) cancellation of the wrong account Question 4 & 5 are based on the following information: Trading Account for the year eaded 31 December 1986 5 S Sales 15,000 Opening stock 4,000 Purchases 9,700 Carringe inwards 300 10.000 14,000 Less closing stock 2.000 12.000 Gross profit od 3.000 15.000 The cost of goods sold is a) S14.000 b) 13,700 S The gross profit percentage on cost is a) 2094 b) 331/35 15.00 c) SI1,700 d) $12.000 c) 25% d) 30%