In finalizing its draft final accounts for the year ended 31 May 21Y9 and its draft balance
Fantastic news! We've Found the answer you've been seeking!
Question:
In finalizing its draft final accounts for the year ended 31 May 21Y9 and its draft balance sheet as at 31 May 21Y9, YZA Ltd found an error in the stock lists used to compute stock value as at 31 May 21Y9. The entry was:
Stock item | Number | Cost per unit | Total cost |
R789 | 120 | £4.20 | £504 |
Required: (a) What is incorrect about this entry? (b) Assess the impact of this error on: (i) the stock valuation as at 31 May 21Y9. (ii) the cost of goods sold for the year ended 31 May 21Y9. (iii) the net profit for the year ended 31 May 21Y9. (iv) the Owner’s Equity as at 31 May 21Y9.
Related Book For
Frank Woods Business Accounting Volume 1
ISBN: 9780273681496
10th Edition
Authors: Frank Wood, Alan Sangster
Posted Date: