Blackheath Engineering Ltd prepared draft financial statements for the most recent year, which reported a profit for the year of 150,000. A subsequent check of the financial statements found the following errors:

1.	An audit fee for the year of 4,500 had not been taken into account.
2.	Cash received from a trade receivable of 20,000 had been treated as a cash sale.
3.	The net realisable value of inventories of 213,000 had been used but the cost of the inventories was 180,000.

The company pays corporation tax of 20 per cent on reported profits before tax.